We covered the charts of DexCom ( DXCM) , which develops glucose monitoring systems for diabetes patients, on Jan. 11. Our take? "Prices closed on the highs of the day Monday so some further near-term price recovery should be expected. This may or may not become a durable low. A low is not a bottom in my book, so further testing should be expected. Avoid the long side for now."
DXCM got an upgrade to "Buy" on Wednesday from a sell-side firm, so another look at charts will not hurt. 
In this daily bar chart of DXCM, below, we can see that prices did bounce from Jan. 11, but the move did not travel very far nor last too long. DXCM made a new low for the move down on Tuesday. The slope of the 50-day average line is still bearish and the 200-day line is cresting. The On-Balance-Volume (OBV) line is pointed down but the 12-day price momentum study (lower panel) shows us equal lows in momentum when prices made lower lows. This difference is a bullish divergence so we need to be watching for another bounce.
In this weekly Japanese candlestick chart of DXCM, below, we fail to find any bullish clues yet. Prices are weak and trade below the cresting 40-week moving average line. The weekly OBV line shows weakness the past three months. The Moving Average Convergence Divergence (MACD) oscillator is pointed down toward the zero-line.
In this daily Point and Figure chart of DXCM, below, we can see that prices met and exceeded their price target of $481.
In this weekly Point and Figure chart of DXCM, below, we can see a potential downside price target of $371.
Bottom line strategy: Fundamental analysts can justify buying a stock in a downtrend, but a technical analyst cannot. I need to see more positive evidence before recommending purchase. Avoid for now.
