Dexcom Shares: Potential 8x Rise Next 3 Years
Recently shares of the Dexcom Inc., that are traded on the NASDAQ exchange, probably have made the bottom and started a new uptrend. Dexcom is a medical device company. The company is focused on development of continuous glucose monitoring systems. Let's look at the price movements of this stock (which is traded at $85.13 now) from the technical point of view. Here is the monthly chart.
Clear motive Elliott Wave structure
There is a pretty clear and obvious motive Elliott Wave structure here, started in 2009.
The top of the wave 1 occured in April 2011, followed by the mid-term downtrend presented by the wave 2 (a zigzag pattern), which was ended in November 2011. After that, the motive wave 3 took place till September 2015. And in the September 2015 - December 2016 period we can see the wave 4 that seems like a "running flat" correction pattern. And there is a high possibility of the new motive wave 5 beginning right now.
And everything fits into a correct trend channel.
Wave symmetry
Wave 1 had 1,147% growth and 29 months length.
Wave 3 had 1,417% growth and 46 months length.
The coming wave 5 should have the same or comparable percentage of growth and the same or comparable length. So there is a high possibility of at least 1,100% growth in the next 3 years, compared to the recent bottom at $57. The calculated price target is around $600 by 2020.
Trend channel
By the trend channel rules, we can see the similar price and time targets.
The price is likely to make the next top at the upper line of the trend channel, which shows us ~$680 somewhere in 2020.
Moreover, the trend channel can help us to recognize early if the forecast is incorrect: in the unlikely case the price fails to reach the target and falls below the lower line of the trend channel, then this wave structure will become invalid and we need to re-analyse it and get out of the market.
The year 2020. Again.
Dexcom is another asset that is gonna have long-term reversal in 2020. See my previous articles:
US Dollar Index Likely to Make Grand Top in 2020
The best time to invest in Dubai will be the year 2020
Clear motive Elliott Wave structure
There is a pretty clear and obvious motive Elliott Wave structure here, started in 2009.
The top of the wave 1 occured in April 2011, followed by the mid-term downtrend presented by the wave 2 (a zigzag pattern), which was ended in November 2011. After that, the motive wave 3 took place till September 2015. And in the September 2015 - December 2016 period we can see the wave 4 that seems like a "running flat" correction pattern. And there is a high possibility of the new motive wave 5 beginning right now.
And everything fits into a correct trend channel.
Wave symmetry
Wave 1 had 1,147% growth and 29 months length.
Wave 3 had 1,417% growth and 46 months length.
The coming wave 5 should have the same or comparable percentage of growth and the same or comparable length. So there is a high possibility of at least 1,100% growth in the next 3 years, compared to the recent bottom at $57. The calculated price target is around $600 by 2020.
Trend channel
By the trend channel rules, we can see the similar price and time targets.
The price is likely to make the next top at the upper line of the trend channel, which shows us ~$680 somewhere in 2020.
Moreover, the trend channel can help us to recognize early if the forecast is incorrect: in the unlikely case the price fails to reach the target and falls below the lower line of the trend channel, then this wave structure will become invalid and we need to re-analyse it and get out of the market.
The year 2020. Again.
Dexcom is another asset that is gonna have long-term reversal in 2020. See my previous articles:
US Dollar Index Likely to Make Grand Top in 2020
The best time to invest in Dubai will be the year 2020
Comment:
Fighting the trend line. Last chance for bulls
Daily RSI angle is broken, so be careful. But that doesn't mean that the bear has come. There is still plenty of time for the new wave of the trend to get established.
Currently the price movement looks like a triangle which is acting as a wave 4 according to the Elliott wave rules. This triangle is a bullish pattern, so it is likely to break to the upside eventually, which will confirm the long term bullishness.
BUT, if it breaks the triangle to the downside and holds below, than the bull is likely to be canceled.