Growth Stocks In The IBD 50 Are Coming Back To Life

A handful of growth stocks in the IBD 50 are bouncing back after sell signals and other setbacks, and some are forming patterns that may give fresh buying opportunities.

A strong market uptrend has helped stocks overcome sell-offs that normally would have meant prolonged downturns.

Tecnoglass (TGLS) broke below the 10-week moving average in late May in a clear sell signal. But the specialty glass company has jumped back above the line. By winning back the 10-week line, a buy zone exists from about 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 heavy trading. But today, the stock is recovering and forming a cup base with a 42.75 buy point.

The digital advertising stock is testing resistance at the 10-week line. A move above that level is needed to keep Perion on track with its new base.

Setting Up After Sell Signals

Amphastar Pharmaceuticals (AMPH) triggered a 7% sell signal in late April from the 42.31 entry of a base.

But the biotech rebounded and on Friday hit an all-time high. Shares are now more than 20% above the buy point, a place where investors may want to take some profits.

E-commerce platform provider Global-e Online (GLBE) came back to life after hitting the 7% sell signal from the 34.82 buy point the week of May 26. Shares and now above 5% buy zone, which went to 36.56.

Monolithic Power Systems (MPWR) is nearing the old Feb. 15 buy point of 530.65 from a deep cup-with-handle base. Shares flashed the 7% signal in March, but rebounded 20.6% the week of May 26 in heavy volume as chip stocks rallied on Nvidia‘s (NVDA) earnings report.

Lululemon Athletica (LULU) was volatile after its April-ended quarter results. Yet the athleisure company 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 26.