Watch These Dexcom Price Levels as Stock Plunges After Guidance Slashed

Shares successful Dexcom (DXCM) mislaid much than a 3rd of their worth successful extended trading Thursday aft nan aesculapian devices institution posted second-quarter results that came successful beneath Wall Street expectations and slashed its yearly revenue forecast.

Below, we zoom retired connected Dexcom’s weekly chart and usage technical analysis to place important value levels to watch retired for amid earnings-fueled selling.

Expected Breakdown From Symmetrical Triangle

Dexcom shares person oscillated wrong a symmetrical triangle since mid-November past year. The well-known floor plan pattern, which consists of 2 converging inclination lines that connects a bid of sequential peaks and troughs, represents a region successful nan prevailing inclination arsenic bulls and bears scope an equilibrium. 

Typically, nan shape precedes a trending move successful nan guidance of nan breakout, which successful nan lawsuit of Dexcom shares, is expected to beryllium little aft nan company’s disappointing income outlook.

Monitor These Key Levels Amid Earnings Sell-Off

Despite nan bears looking apt to return power successful nan short term, investors should show 4 circumstantial areas connected nan floor plan wherever nan banal could pull buying interest.

The first level sits astatine $70, a location wherever nan shares could brushwood support from a horizontal line linking a February 2020 value highest pinch nan lowest constituent of nan symmetrical triangle.

A nonaccomplishment to clasp nan supra area could spot a diminution to astir $52. This region whitethorn find support from nan debased of 2 profit-taking areas connected nan floor plan successful December 2019 and during nan pandemic-induced rout successful March 2020.

Further trading could trigger a diminution to nan $37 level, wherever nan value whitethorn pull buyers adjacent respective salient value peaks and a play of constrictive consolidation that formed betwixt September 2018 and October 2019.

Finally, a much terrible longer-term correction whitethorn spot nan shares revisit $24, wherever a level of important anterior guidance connected nan floor plan could flip into support.

It’s besides worthy keeping an oculus connected nan relative spot scale (RSI), which looks group to move into oversold territory pursuing nan earnings-fueled selling. On nan 4 occasions nan parameter has fallen beneath nan 30 period since 2016, Dexcom shares person gone connected to summation astatine slightest 40% wrong nan adjacent six months.

Dexcom shares fell 37% to to $68.15 successful after-hours trading Thursday.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.