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DexCom (DXCM) Just Reclaimed the 50-Day Moving Average
After reaching an important support level, DexCom (DXCM - Free Report) could be a good stock pick from a technical perspective. DXCM surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
DXCM has rallied 7.3% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests DXCM could be on the verge of another move higher.
The bullish case solidifies once investors consider DXCM's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 10 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on DXCM for more gains in the near future.