Shares in Dexcom (DXCM) lost more than a third of their value in extended trading Thursday after the medical devices company posted 澳洲幸运5官方开奖结果体彩网:second-quarter results that came in below Wall Street expectations and slashed its annual revenue forecast.

Below, we zoom out on Dexcom’s 澳洲幸运5官方开奖结果体彩网:weekly chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify important price levels to watch out for𓂃 amid earnings-fueled selling.

Expected Breakdown From Symmetrical Triangle

Dexcom shares have oscillated within a 澳洲幸运5官方开奖结果体彩网:symmetrical triangle since mid-November last year. The well-known chart pattern, which consists of two converging trend lines that connects a series of sequential peaks and troughs, represents a pause in the prevailing trend as 澳洲幸运5官方开奖结果体彩网:bulls and bears reach an equilibrium. 

Typically, the pattern precedes a trending move in the direction of the breakout, which in the case of Dexcom shares,🥂𝔍 is expected to be lower after the company’s disappointing sales outlook.

Monitor These Key Levels Amid Earnings Sell-Off

Despitꦜe the bears looking likely to take control in the short term, investors should monitor four specific areas on the chart where the stock could attr😼act buying interest.

The first level sits at $70, a location where the shares could encounter support from a 澳洲幸运5官方开奖结果体彩网:horizontal line linking a February 2020 price peak w💛ith 𝓀the lowest point of the symmetrical triangle.

A failure to hold the above area could see a decline to around $52. This region may find support from the low of two 澳洲幸运5官方开奖结果体彩网:profit-taking areas on the chart in Decemb💎er 2019 and during the pandemic-inducedꦓ rout in March 2020.

Further selling could trigger a decline to the $37 level, where the price may attract buyers near several prominent price peaks and a period of narrow 澳洲幸运5官方开奖结果体彩网:consolidation that formed between Se𓃲ptember 2018 and October 2019.

Finally, a more severe longer-term 澳洲幸运5官方开奖结果体彩网:correction may see the shares revisit $24, wher🎶e a level of significant prior resistance on the chart could flip into support.

It’s also worth keeping an eye on the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI), which looks set to move into oversold territory following the earnings-fueled selling. On the four occasions the🅷 indicator has fallen below the 30 threshold since 2016, Dexcom shares ไhave gone on to gain at least 40% within the next six months.

Dexcom shares fell 37% to to $68.15 in after-hours tradi🌠ng Thursday.

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