rossgivens

DXCM High Tight Flag Breakout

Long
NASDAQ:DXCM   DexCom, Inc
Dexcom makes glucose monitoring systems for patients with diabetes. I don't see Americans getting healthier any time soon, so demand for the company's products should remain high for the foreseeable future.

The stock is just breaking out of a high tight flag pattern . Technically, a high tight flag requires a move up of 100% or more, so DXCM comes up a little short on the initial surge. But the pullback inside the flag was very shallow - well below the 25% allowed in this setup. So for me, it balances out.

On the fundamental side, sales growth is accelerating. +23%, +25%, and +32% for the last three quarters. Earnings are also expected to jump by 40% in 2022.

The stop loss on this trade would be the just beneath the low of the flag at $487.00.