For his second and final "Executive Decision" segment of Thursday's Mad Money program, Jim Cramer spoke with Kevin Sayer, chairman, president and CEO of DexCom (DXCM) , the glucose monitoring company.
Sayer added that every diabetic patient can do better with monitoring, and DexCom is building the evidence to support those claims. One thing the company is looking to change is how diabetes is measured. He said the A1C metric provides an average of insulin levels, but the "time in range" metrics that DexCom can provide offers far more by showing what percentage of the day a patient's insulin levels are inside recommended ranges.
DexCom is also working to improve access to their systems overseas.
Let's monitor the charts of DXCM.
Our last review of DXCM was on Feb 12 when the stock was upgraded to a buy by TheStreet's Quant Ratings service. We wrote that "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."
In the updated daily bar chart of DXCM, below, we can see that the stock had problems staying above $420 in February and April. Prices did not sustain themselves over $420 until late June. DXCM is now trading above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line has been rising strongly from May and tells us that buyers of DXCM have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator turned lower in early July and tells us to take profits on longs.
In the weekly Japanese candlestick chart of DXCM, below, we can see an interesting picture. The price action since May of 2020 could be viewed as a long-term consolidation pattern. Prices look like they are making an upside breakout but trading volume has not expanded as it should on an important breakout and the latest candlestick pattern looks like a doji pattern and that tells us that buyers and sellers are in balance.
The weekly OBV line has broken out to a new high and the MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of DXCM, below, we can see that the shares have reached and exceeded a price target of $440.
This weekly Point and Figure chart of DXCM, below, is projecting a potential $672 price target.
Bottom-line strategy: The charts of DXCM are overall mixed. Prices are pointed up on the daily chart but an overall seasonally weak period for stock prices gives me pause. Only risk to $430 if you decide to go long DXCM.