DXCM WCA -Cup and Handle Company: Dexcom Inc.
Ticker: DXCM
Exchange: NASDAQ
Sector: Health Technology
Introduction:
Our technical analysis today concentrates on Dexcom Inc. (DXCM), a prominent name in the Health Technology sector, listed on the NASDAQ. A potential Cup and Handle pattern, serving as a reversal formation, has been forming on the weekly chart, suggesting a promising setup for bullish traders.
Cup and Handle Pattern:
The Cup and Handle pattern typically emerges during a period of consolidation, signifying a potential bullish reversal or continuation. It's recognized by a "cup" formation, followed by a smaller "handle".
Analysis:
Previously, Dexcom was experiencing a clear downward trend, represented by the blue diagonal line. However, the trend appears to be changing, with the price now consolidating in a Cup and Handle pattern. Though the handle's size is slightly larger than the norm, the well-defined horizontal resistance at 125.58 lends credibility to the pattern's significance.
The price is standing above the 200 EMA, confirming a bullish environment. If the price breaks above the horizontal resistance, it could present an excellent opportunity for a long position. The subsequent price target is projected at 184.24, indicating a potential upside of approximately 46.69%.
Conclusion:
The weekly chart of Dexcom reveals an interesting Cup and Handle pattern, hinting at a potential bullish reversal. As such, this setup could provide a favorable long trading opportunity.
Disclaimer: This analysis is not financial advice and is intended for educational purposes only. Always do your own research and consult with a financial advisor before making investment decisions.
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Best regards,
Karim Subhieh
