Singapore (13 April 2020) – Price of Dexcom, Inc. (Nasdaq: DXCM) dipped slightly below its 50-day Moving Average (MA50). This is normal when the index market dipped 0.16% on 7 April 2020 and if the index market continues to slide DXCM will slide along.
DXCM closed trading on 9 April at USD275.27, up USD17.26. It looks like DXCM may form a cup & handle pattern before the next move and to test the next resistance of USD280.97 area (resistance 1).
Source: www.tradingview.com/x/CPGDGRwT/
For aggressive trader/investor, you may wish to go long above the resistance 1 level, while for the conservative trader/investor you may wish to go long once the price moves above the resistance 2 level. Stop loss may be placed according to your risk tolerance level, but not going more than 7% would be ideal.
Our target profit range would be around the 20% from the previous peak of USD306.71 (20 Feb 2020) or around the USD360/USD368 area before we can expect some price correction. However, this target could change from time-to-time and you should assess it accordingly on a daily/weekly basis.
Overall, DXCM chart still show a bullish bias, as the MA200 provides a good support in the past (from 17 Mar 2020) lifting the price to the current level. If the price does not dip and close lower than MA200 and/or not closing the previous gap-up area, we may revise our analysis.
DXCM, a medical device company, is focused on the design, development and commercialisation of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers.-/-
