Dexcom Inc. (DXCM) – pharma company with plenty of downward potential

ISIN: US2521311074

Dexcom Inc. is an internationally active company with its headquarters in San Diego, California. Its focus is on the development of glucose systems for diabetes management. In the following analysis, we will go into more detail on the company’s stock from a chart-related point of view.

 

Review (daily chart)

The downward trend was confirmed at the beginning of May. The stock has just corrected a little more than 50%, making it a potential short candidate with speculation on the continuation of the downward trend as soon as corresponding entry signals form. A correction running somewhat higher would be desirable, since this would result in downward potential of up to 29%.

 

DXCM daily chart with targets and resistance

DXCM daily chart with targets and resistance

 

Outlook hourly chart

In the hourly chart, we can see the correction that is currently underway, which is yet to develop in our preferred trading direction. For a short entry, one should wait for a signal to form, e.g. in the form of a P2, and then place the stop loss above the last P3 (displayed in green). Alternatively, and with the advantage of a cheaper stop, one can also practice trading from out of the correction, i.e. the formation of a reversal candle at a significant point.

The target is located in the areas around $66.00 and $58.00 (see green zones in the daily chart). If the price considerably exceeds the last significant high at $82.00, one should refrain from pursuing the short scenario for the time being (see red zone).

 

DXCM hourly chart with outlook

DXCM hourly chart with outlook

 

Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.

 

 

 

 

Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.

Disclaimer:

Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.

Dexcom Inc. (DXCM) – pharma company with plenty of downward potential
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