On July 15 we reviewed the charts of medical system maker DexCom (DXCM) and wrote that “Aggressive merchants may probe the lengthy aspect of DXCM round present ranges. Threat to $72. Perhaps we are able to rally to the $100 space.”
Shares of DXCM had been robust in early morning buying and selling Friday, up about 7% and have reached our $100 value goal.
Let’s examine what the chart appears to be like like this morning.
On this each day bar chart of DXCM, under, we are able to see that costs traded sideways for the reason that center of July in a bullish consolidation sample. Costs at the moment are buying and selling above the rising 50-day transferring common line and above the slower-to-react 200-day transferring common line. The On-Stability-Quantity (OBV) line has moved sideways the previous 4 months however appears to be like primed to maneuver larger.
The Shifting Common Convergence Divergence (MACD) oscillator has been transferring across the zero line nevertheless it too appears to be like primed to maneuver larger to a transparent purchase sign.
On this weekly Japanese candlestick chart of DXCM, under, 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 transferring common line.
The weekly OBV line continues to be pointed down. The MACD oscillator is bettering however nonetheless stays under the zero line.
On this each day Level and Determine chart of DXCM, under, 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, under, we see the identical $127 value goal.
Backside line technique: Merchants who’re lengthy DXCM from our July 15 advice ought to take partial earnings Friday as costs have reached our authentic value goal of $100. Maintain the steadiness of your shares in search of $127 and lift your promote stops to $85.