Dexcom Shares: Potential Rise In The Next 3 Years
Anatoly Grigoryev | Jan 17, 2017 01:11AM ET
Recently, shares of the DexCom Inc (NASDAQ:DXCM) have probably made the bottom and started a new uptrend. Dexcom is a medical device company. The company is focused on the development of continuous glucose monitoring systems. Let's look at the price movement of this stock (which is traded at $85.13 now) from the technical point of view. Here is the monthly chart.
There is a pretty clear and obvious motive Elliott Wave structure here, started in 2009. The top of the wave 1 occured in April 2011, followed by the mid-term downtrend presented by the wave 2 (a zigzag pattern), which was ended in November 2011.
After that, the motive wave 3 took place till September 2015. And in the September 2015 - December 2016 period we can see the wave 4 that seems like a "running flat" correction pattern. There is a high possibility that the new motive wave 5 is beginning right now. Everything fits into a correct trend channel. Here is a motive Elliot Wave structure with a channel shown schematically:
Wave 1 had 1,147% growth and 29 months length. Wave 3 had 1,417% growth and 46 months length. The coming wave 5 should have the same or comparable percentage of growth and the same or comparable length. So there is a high possibility of at least 1,100% growth in the next 3 years, compared to the recent bottom at $57. The calculated price target is around $600 by 2020.
By the trend channel rules, we can see the similar price and time targets:
The price is likely to make the next top at the upper line of the trend channel, which shows us ~$680 somewhere in 2020. Moreover, the trend channel can help us to recognize early if the forecast is incorrect: in the unlikely case the price fails to reach the target and falls below the lower line of the trend channel, then this wave structure will become invalid and we need to re-analyse it and get out of the market.
h3 The year 2020. Again./h3
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Dexcom is another asset that is gonna have long-term reversal in 2020. See my previous articles:
- US Dollar Index Likely to Make Grand Top in 2020
- The best time to invest in Dubai will be the year 2020
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