DexCom, Inc. (DXCM) has broken out on the upside and with more gains likely on the charts let's come up with a strategy to take advantage of this opportunity.
(For more on DXCM, see Market Loves Fintech: Cramer's 'Mad Money' Recap.)
In this daily bar chart of DXCM, below, we can see how prices have been in an uptrend since November but the trend became stronger in March and again in May.
DXCM is above the rising 50-day moving average line as well as the bullish 200-day average. In early April the 50-day line crossed above the 200-day line for what is commonly called a (bullish) golden cross.
The daily On-Balance-Volume (OBV) line has been rising from early March and tells us that buyers of DXCM have been more aggressive with heavier volume being traded on days when the stock has closed higher.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early March and is poised to cross to the upside for a fresh outright go long signal.
In this five-year weekly bar chart of DXCM, below, we can see that prices have broken out over the 2016 and 2015 highs. The 40-week moving average line is rising and bullish. The weekly OBV line has been strong since October and the MACD oscillator is bullish.
In this Point and Figure chart of DXCM, below, a $130 price target is being projected.
Bottom line: DXCM is bullish on all three charts. Traders should go long on strength above $106 risking below $95 and looking for gains to $130.