Sayer said Dexcom is working closely with a number of partners, including Medtronic (MDT) to create an artificial pancreas than can both monitor glucose levels, then use smart algorithms to deliver the insulin patients need when they need it. These tools are making diabetes care easier and ultimately leading to better outcomes for diabetes patients.
When asked what's coming next, Sayer said they always have something in the works including upgrades to their existing G6 platform, direct connections to the Apple (AAPL) Watch as well as their next-generation G7 platform. This all very interesting but let's check the charts and indicators.
In the daily bar chart of DXCM, below, we can see that prices have been in a long, sideways consolidation pattern since August. Sellers have capped the upside above $150 while buyers have moved in when prices got to the $120-$110 area or zone. DXCM has rallied quickly so far this month and is close to another upside test of the resistance area. Prices are above the rising 50-day moving average line and above the flat 200-day line.
The daily On-Balance-Volume (OBV) line looks like it is leading the price action as the OBV line has broken out to a new high for the move up. The OBV line, created by the late Joseph Granville, can often lead prices and foreshadow an upside breakout.
The trend-following Moving Average Convergence Divergence (MACD) oscillator just moved above the zero line for an outright buy signal on this time frame.
In the weekly bar chart of DXCM, below, we can see a generally positive outlook. Prices are above the cresting 40-week moving average line.
The weekly OBV line did decline in March and April suggesting more aggressive selling but the line looks like it is turning up now.
The weekly MACD oscillator has turned up from below the zero line for a cover shorts buy signal. An outright buy signal could come soon if DXCM continues to rally.
In this Point and Figure chart of DXCM, below, we can see that prices have reached and exceeded a target of $139 and that there is some overhead chart resistance that extends up to $155.
Bottom-line strategy: The bar charts of DXCM (above) look like they are strong enough to support a breakout to new highs. The height of that long consolidation pattern is about $40 and when added to the breakout would give us a potential price target of around $190-$195. Not bad for a trade. If you can afford to risk to $130 you can go long here and add above $155 looking for the $190 area over the summer.