We’re Altering Our DexCom Technique because the Shares Transfer Larger

On July 15 we reviewed the charts of medical system maker DexCom (DXCM) and wrote that “Aggressive merchants may probe the lengthy facet of DXCM round present ranges. Danger to $72. Perhaps we are able to rally to the $100 space.”

Shares of DXCM have been sturdy in early morning buying and selling Friday, up about 7% and have reached our $100 value goal. 

Let’s have a look at what the chart seems to be like this morning. 

On this day by day bar chart of DXCM, beneath, we are able to see that costs traded sideways because the center of July in a bullish consolidation sample. Costs are actually buying and selling above the rising 50-day shifting common line and above the slower-to-react 200-day shifting common line. The On-Stability-Quantity (OBV) line has moved sideways the previous 4 months however seems to be primed to maneuver larger.

The Shifting Common Convergence Divergence (MACD) oscillator has been shifting across the zero line but it surely too seems to be primed to maneuver larger to a transparent purchase sign. 

On this weekly Japanese candlestick chart of DXCM, beneath, we see a bullish image. Costs made a backside reversal sample the previous three weeks. DXCM surged to a brand new excessive and is crossing the 40-week shifting common line.

The weekly OBV line remains to be pointed down. The MACD oscillator is enhancing however nonetheless stays beneath the zero line. 

On this day by day Level and Determine chart of DXCM, beneath, we are able to see an upside breakout and potential value goal within the $127 space. 

 

On this weekly Level and Determine chart of DXCM, beneath, we see the identical $127 value goal. 

 

Backside line technique: Merchants who’re lengthy DXCM from our July 15 advice ought to take partial income Friday as costs have reached our authentic value goal of $100. Maintain the steadiness of your shares searching for $127 and lift your promote stops to $85.