In his final "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer also checked in with Kim Blickenstaff, executive chairman at Tandem Diabetes Care (TNDM) , which posted strong earnings last week that sent shares up over 8% before giving back much of those gains by the close. Blickenstaff blamed the sudden reversal in their shares on global uncertainty. He said Tandem has no business in China and is in "acceleration mode."
Currently, only 30% of Type 1 diabetes patients are using a pump, Blickenstaff said, leaving a lot of room for growth for Tandem. The market potential is even greater worldwide, especially in Europe. Let's visit with the charts and indicators.
In this daily bar chart of TNDM, below, we can see some positive technical developments. While prices are below the declining 50-day moving average line they are above the rising 200-day line.
The daily On-Balance-Volume (OBV) line shows a rising trend from last August to March. The line declines slightly from March to June and then starts to firm again. Looking closely, the OBV line firms while prices go sideways to slightly lower for a bullish divergence.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but poised for a turn higher, in my opinion.
In this weekly bar chart of TNDM, below, we can see that prices are above the rising 40-week moving average line. A decent base pattern can be seen in 2017 before the rally to $70.
The weekly OBV line is steady and the MACD oscillator is above the zero line and could soon cross to the upside.
In this Point and Figure chart of TNDM, below, we can see a possible downside price target of $54.69. A trade at $58.65 would probably weaken this chart but a trade at $64.78 would probably strengthen it.
Bottom line strategy: If you look at the dip in prices in April for TNDM you will notice that volume did not increase and the OBV line held steady - these are "tells" that TNDM will probably trade higher in the weeks ahead.
