We last looked at DexCom (DXCM) on December 10 but the price of the stock has steadied and today thestreet.com's quantitative service upgraded their rating to Buy.
Let's check out the charts again.
In this daily bar chart of DXCM, below, we can see that prices are trading above the rising 50-day moving average line. Prices just recently rallied above the 200-day moving average line and are in position to retest or break the July/August highs.
The On-Balance-Volume (OBV) line has been rising since November telling us that buyers of DXCM have been more aggressive. The Moving Average Convergence Divergence (MACD) is pointed up and bullish.
In this weekly Japanese candlestick chart of DXCM, below, we can see a positive looking picture. Prices are in an uptrend and are trading above the rising 40-week moving average line.
The OBV line has been positive the past three years. The MACD oscillator has just crossed to the upside for a new outright buy signal.
In this daily Point and Figure chart of DXCM, below, we can see an upside price target in the $437 area.
In this weekly Point and Figure chart of DXCM, below, we can see a potential price target in the $495 area.
Bottom line strategy: Bullish charts and a quantitative buy recommendation for DXCM are a good thing. Traders could go long DXCM on strength above $420 while risking to $370. $437 and then $495 are the price targets.
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