The Nasdaq Composite broke back above its key 50-day moving average on Monday and after today's action, the RSI and MACD are now in positive positions.
A number of underlying stocks from this Tech-heavy index are also exhibiting bullish downtrend reversals and below is a chart of online commerce provider Shopify (SHOP) which broke back above its key moving averages on volume today. The RSI is positive while the MACD had a bullish crossover before potentially turning positive with a break above zero.
DAILY CHART OF SHOPIFY (SHOP)
This stock was a big gainer coming out of the bear market as quarantine mandates escalated the growth of online retailing. The company's 2nd quarter revenues doubled from a year earlier with analysts calling for equally strong 3rd quarter results that are due next month.
SHOP is a high-quality growth stock which was a big winner for subscribers to my MEM Edge Report after posting gains of 209% before its September peak in price. And while we've flagged this stock as positive again, we're not as bullish on its prospects at this time.
Take a 4-week trial of my MEM Edge Report to uncover what we're seeing in SHOP and other stocks reversing their recent downtrends. We're also cautious on the broader markets because a proven system that has called every market bottom has not yet triggered.
Sign up today for a nominal fee and you'll receive our in-depth Sunday report as well as alert reports from yesterday and today! You can review a sample report here.
Warmly,
Mary Ellen McGonagle, MEM Investment Research
