DXCM stock price has been in a bullish trend since the start of June 2023, rising from the low of $113.50 and forming an annual high of $138.92. The stock price faced strong rejection from $138.10 and declined to form a support at $126.80. Currently, the price is headed toward retesting the annual high and resistance level of $138.10.
The candle of 25 July 2023 closed as a strong bullish candle and the last candle broke the high of the previous candle which provided slight confirmation regarding the bullish move. Looking to the left, there are clean candles and if the price can rise above $131, it might retest at $138.10.
DexCom is scheduled to release its second quarter 2023 results on July 27, after the closing bell. The last quarter’s results were positive and the company earnings beat estimates by 13.33%.
Second Quarter Results To Be Released Today
In the first quarter, international revenue which was 29% of total revenue soared 21% year over year to $215.5 Million. DexCom’s second-quarter revenue is likely to be aided by the continuous increase in volume. The rise can be linked to new patients across all channels and rising global awareness regarding the benefits of its real-time continuous glucose monitoring devices (CGM) systems.
The sensor segment and domestic and international revenue growth are likely to be key catalysts behind the company’s second-quarter results. In July 2023, the G7 continuous glucose monitoring (CGM) system in Canada was approved which brings optimism. DXCM might provide updates on the release of new systems in the country.
The increase in operating expenses and intense competition might weigh down the second-quarter earnings report. The consensus estimate of revenue is $841.16 million and earning per share estimates is $0.226.
Will DXCM Stock Price Shatter $138.10 Level in Upcoming Days?
DXCM stock price trades rejected the 50-day exponential moving average and climbed above the 20-day EMA, indicating bullish momentum in the price. Chaikin money flow score (CMF) is 0.02 suggesting slight strength in the market. CMF is diverging from the price action as the price is currently bullish.
The relative strength index has jumped above the 50 mark and currently stands at 52.33 suggesting that the price is in neutral territory but positive earnings might fuel up the bullish momentum.
The stock price crossed the 20-day SMA of Bollinger and is currently trying to climb above it. The Bollinger bands have expanded indicating that volatility is rising in the market.
Conclusion
The market structure and price action of DexCom stock is bullish after the formation of a support level of $126.80. The second quarter earnings would decide the further direction of the price.
Technical Levels
- Major support: $126.80 and $119.40
- Major resistance: $138.10 and $145
