Shares of DexCom (DXCM) gapped higher Friday after the company reported better-than-anticipated quarterly numbers Thursday evening.
In our October 12 review of DXCM we wrote that "The price of DXCM could pull back a little bit further in the short run. Traders who are long should continue to hold with sell stops at $85. We probably will see further sideways price action before an attempt at further gains."
Let's check the charts again.
In the updated daily bar chart of DXCM, below, we can see that the shares traded sideways and dipped towards the rising 50-day moving average line in the days after our October 12 review. Prices gapped higher Friday to refresh the uptrend. Our suggested sell stop at $85 was not reached. DXCM is firmly above the now bottoming 200-day moving average line.
The On-Balance-Volume (OBV) line has been moving sideways since May and is likely to turn higher now. The Moving Average Convergence Divergence (MACD) oscillator is bullish.