DXCM had been essentially a range bound stock in the past 3 years, forming what is potentially a long term head & shoulders formation (bearish if break down). However, it looks like the odds of breaking down has diminished with a bullish monthly pin bar now forming after finding support at its 88.6% fib retracement (imperfect double bottom).
The stock is still below its 200 day MA but this MA is less relevant for a stock that is just ranging sideways for the past few years. It can still be a good candidate for swing trade due to its wide range.
The daily chart is starting to exhibit reversal patterns with higher highs (HH) and higher lows (HL). The recent earnings gap up on huge volume was a good catalyst. And the subsequent pullback to almost close the gap (and today's "bullish harami" to signify potential rebound) provided an opportunity to long at lower risk.
Ready to test a small long position with initial stop loss just under $83.50 (allowing for gap fill that might still stand a small chance of happening IMO)
Disclaimer:
This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie trailing stop loss and position sizing) is (probably the most) important!
Take care and Good Luck!
The stock is still below its 200 day MA but this MA is less relevant for a stock that is just ranging sideways for the past few years. It can still be a good candidate for swing trade due to its wide range.
The daily chart is starting to exhibit reversal patterns with higher highs (HH) and higher lows (HL). The recent earnings gap up on huge volume was a good catalyst. And the subsequent pullback to almost close the gap (and today's "bullish harami" to signify potential rebound) provided an opportunity to long at lower risk.
Ready to test a small long position with initial stop loss just under $83.50 (allowing for gap fill that might still stand a small chance of happening IMO)
Disclaimer:
This is just my own analysis and opinion for discussion and is NOT a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie trailing stop loss and position sizing) is (probably the most) important!
Take care and Good Luck!