Company: Dexcom Inc. Ticker: DXCM Exchange: NASDAQ Sector: Health Technology
Introduction:
Our technical analysis today concentrates on Dexcom Inc. (DXCM), a prominent name in the Health Technology sector, listed on the NASDAQ. A potential Cup and Handle pattern, serving as a reversal formation, has been forming on the weekly chart, suggesting a promising setup for bullish traders.
Cup and Handle Pattern:
The Cup and Handle pattern typically emerges during a period of consolidation, signifying a potential bullish reversal or continuation. It's recognized by a "cup" formation, followed by a smaller "handle".
Analysis:
Previously, Dexcom was experiencing a clear downward trend, represented by the blue diagonal line. However, the trend appears to be changing, with the price now consolidating in a Cup and Handle pattern. Though the handle's size is slightly larger than the norm, the well-defined horizontal resistance at 125.58 lends credibility to the pattern's significance.
The price is standing above the 200 EMA, confirming a bullish environment. If the price breaks above the horizontal resistance, it could present an excellent opportunity for a long position. The subsequent price target is projected at 184.24, indicating a potential upside of approximately 46.69%.
Conclusion:
The weekly chart of Dexcom reveals an interesting Cup and Handle pattern, hinting at a potential bullish reversal. As such, this setup could provide a favorable long trading opportunity.
Disclaimer: This analysis is not financial advice and is intended for educational purposes only. Always do your own research and consult with a financial advisor before making investment decisions.
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Love the analysis! In my own opinion, I will wait on the buy till a break above the immediate supply zone at $134.61. This is because the distance between the resistance you highlighted and the supply zone is quite tight, so there may be a spike and all before eventually rallying up. If price breaks the $134.61 and stays above; then we should see a high chance of price going to the $160.80 profit target. If we eventually breaks this level, I think it may get to $184 and above. This is just my own opinion and observation. As I said, love your analysis
KarimSubhieh
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@phowops, Thank you for your kind words I am glad that we share the same opinion. I think your approach makes total sense, so 134.61 could act as a natural breakout filter, also 164 as intermediate resistance is to be expected. Very well analyzed thanks for sharing your thoughts with all of us. Kudos and have a wonderful weekend!