DexCom, Inc. is a medical device manufacturing company, which engages in the design, development and commercialization of glucose monitoring systems for ambulatory use by people with diabetes.
Take a look at the 6-month chart of DexCom (DXCM) below with added notations:
Chart of DXCM provided by TradingView
DXCM has formed an important level of support around the $110 mark (yellow). The stock has rallied off that zone multiple times in recent months and appears to be falling back down to it again. If the $110 mark were to break, lower prices would likely follow.
The Tale of the Tape: DXCM has key support area around $110. A trader could enter a long position at or around the mark with a stop placed under it. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT
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