npatz_2000
Long

PENNANT BREAKOUT PULLBACK DXCM

NASDAQ:DXCM   DEXCOM INC
54 2 1
Breakout from pennant pattern, pullback to breakout level. Target AB=CD
I have been concentrating on re-accumulation and re-distribution patterns (AKA continuation patterns). With that said I have been looking at ways to screen for these patterns objectively. And have been reviewing hundreds of charts with significant breakouts. And this pattern continues to repeat itself prior to big breakouts. This a price/momentum divergence with MACD. Personally I don't really like indicators but I need a way to scan, so I am giving it a try.
Regarding the volume, I don't want to see any large spikes in volume up or down really. This is because these volume spikes are generally seen at the beginning and end of trends. When I say the end of the trend this could simply mean a pause in the trend (re-accumulation). However, it is almost impossible to tell re-accumulation vs. Distribution until after the fact it is better to bet on the trend continuing until we see any significant supply volume, which we haven't seen yet. And we haven't seen any significant demand volume indicating the end of the trend either. The stock could go up sideways or down, I don't know, but we are in an uptrend and I would rather bet on the trend continuing than reversing until we see heavy supply volume. I could also abandon the trade in 1 - 2 weeks if it moves sideways without stopping out if I haven't seen any significant rise in price.
Good to hear from you. Good trading.
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Looking at the volumes are you confident, that this is going to continue? I'm not. I think it might start ranging from here, or go down, rather than up.
We shall see... ;-)
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