Don't Ignore This Chart!

Formerly Leading Stocks Exhibiting Downtrend Reversals

Mary Ellen McGonagle

Mary Ellen McGonagle

President, MEM Investment Research

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

Mary Ellen McGonagle
About the author: is a professional investing consultant and the president of MEM Investment Research. After eight years of working on Wall Street, Ms. McGonagle left to become a skilled stock analyst, working with William O’Neill in identifying healthy stocks with potential to take off. She has worked with clients that span the globe, including big names like Fidelity Asset Management, Morgan Stanley, Merrill Lynch and Oppenheimer. Learn More