What chop and sideways action looks likeNASDAQ:DXCM Below 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
