Here's Where to Inject a Trade in Tandem Diabetes Care
I'm watching the $37 area, and here's why.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Shares of Tandem Diabetes Care TNDM is an insulin delivery and diabetes technology company that manufactures and sells advanced automated insulin delivery systems.
Let's review the charts and indicators of TNDM to see what technical strategy makes sense today.
In this daily bar chart of TNDM, below, I can see that prices have rallied from an early November nadir. Prices are trading above the rising 50-day moving average line. The slope of the 200-day moving average line is positive and intersects down around $29. The On-Balance-Volume (OBV) line has moved up and down with the price action but it has created a bearish divergence the past two months as it made a slightly lower- high and prices made a higher-high. The Moving Average Convergence Divergence (MACD) oscillator has been correcting lower in June.
In this weekly Japanese candlestick chart of TNDM, below, I can see that prices have been making a large bottom pattern the past two years. Prices trade above the rising 40-week moving average line. Prices may not pull back to test the 40-week average, but they look capable of a deeper correction. The weekly OBV line shows us a rising pattern from early November. This trend is bullish. The MACD oscillator is above the zero line, but it has started to narrow.
In this daily Point and Figure chart of TNDM, below, I can see that the software is projecting a potential downside price target in the $37 area.
In this weekly Point and Figure chart of TNDM, below, I can see a potential upside price target in the $65 area.
Bottom line strategy: The share price of TNDM has been retreating recently. There is a gap below the market that some traders may be anticipating should be filled. A Point and Figure chart target of $37 also supports the idea of a deeper pullback. Longer-term, prices could head higher. If TNDM bottoms in the $37 area in the weeks ahead it may be worthwhile to purchase.
We'll see.
Employees of TheStreet are prohibited from trading individual securities.