DXCM breaks above 20-day moving average for the first time since March 6th
DexCom Inc. (DXCM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, DXCM finished Thursday at 250.21 gaining $10.88 (4.55%), notably underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DXCM as at Mar 26, 2020):
Thursday's trading range has been $13.58 (5.57%), that's below the last trading month's daily average range of $21.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DXCM.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
DexCom managed to close above the 20-day moving average at 246.29 for the first time since March 6th. Prices are trading close to the key technical resistance level at 254.00 (R1). After having been unable to move lower than 237.01 in the previous session, the share found buyers again around the same price level today at 239.92. The last time this happened on March 19th, DXCM gained 1.58% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 254.00 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for DexCom. Out of 129 times, DXCM closed higher 55.81% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.57% with an average market move of 2.29%.