DXCMBelow you'll find a chart of DXCM, a medical device company that manufactures diabetic devices. Really popular brand and praised for their innovative tech. As you can see, it had a massive up and now its been consolidating for a few weeks as a result of the crazy buying that occurred for months.While it has found a bottom, its trading in what we call no man's land.
Taking a trade at this exact price is foolish because
1. you don't have a clear target of when it may reach there
2. No momentum
3. Capital is locked in doing nothing for a while
4. Stop loss is quite far down and has a high probability of getting tested
How to play this? sit and wait. Set price alerts for a break of 365 ish, setting a tight stop loss in case this breakout fails with too little volume
Alternatively, selling puts 2-4 weeks out at the 300 or below strike would net you some decent premiums while you wait. Owning shares at $300 wouldnt be too bad since there is an established support level
Alternatively, just wait for price to break 456$ (previous ATH), if it does with decent volume, it will go on another raging bull run for months. In the mean time, set alerts and wait it out
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.