A handful of IBD 50 growth stocks are rebounding from sell signals and other setbacks, and some are forming patterns that could offer new buying opportunities.
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A strong uptrend in the market helped stocks overcome a sell-off that would normally have led to prolonged downturns.
Tecnoglass (TGLS) broke below the 10-week moving average at the end of May in a clear sell signal. But the special glassware company jumped over the line. Reclaiming the 10 week line, a buy zone exists from around 44.25 to 48.68.
Perion network (PERI) sold off and also triggered a sell signal in late April and early May when it broke below the 10-week moving average in intense trading. But today the stock is rallying and forming a cut base with a buy point of 42.75.
Digital ad stock is testing resistance at the 10-week line. A move above this level is necessary to keep Perion on track with its new base.
Setting up aftermarket signals
Amphastar Pharmaceuticals (AMPH) triggered a 7% sell signal in late April from the entry at 42.31 of a base.
But biotech rebounded and hit an all-time high on Friday. Stocks are now more than 20% above the buy point, a place where investors may want to take profits.
e-commerce platform provider Global-e online (GLBE) came back to life after hitting the 7% sell signal from the buy point of 34.82 the week of May 26th. Shares and now above the 5% buy zone, which has risen to 36.56.
Monolithic power systems (MPWR) is closing in on the former Feb 15 buy point of 530.65 from a deep cup base with handle. Stocks flashed the 7% signal in March, but rebounded 20.6% the week of May 26 in strong volume as chip stocks rallied Nvidiaincome report from (NVDA).
Lululemon Athletica (LULU) has been volatile after its April quarterly results. Still, the athleisure firm has gained 6% over the past week and is back near the 386.70 entry. This, despite hitting the 7% sell signal the week of May 26th.
These growth stocks form a bullish pattern
The tight three-week pattern – which identifies an opportunity to add stock to an existing position – continues to appear in the IBD 50.
irish airline Ryanair Holdings (RYAAY) soared after reporting higher-than-expected earnings and sales figures on May 22. Since then the stock has traded tight and is in what can be called a tight four week pattern with a buy point of 108.90. .
Manufacturer of cosmetics and skin care elf beauty (ELF) is forming a tight three-week setup, with a secondary buy point at 108.45. Keep in mind that ELF has more than tripled since its first breakthrough last July.
After surging in late April on a better-than-expected first-quarter earnings report, Chipotle Mexican Grill (CMG) started trading within a range. It formed a tight four-week pattern with an entry of 2,139.88.
Manufacturer of sleep apnea devices Inspires medical systems (INSP) is extended from entry 277.18. After three weeks of tight action, look for a move above 316.80.
And after climbing about 25% since its March breakout, HubSpot (HUBS) settled into a tight formation with an entry of 535.12.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
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