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Is This Stock Being Accumulated or Distributed?

Sometimes, when I squint at a chart, I see estranged signals. That is definitely the specimen for 10x Genomics Inc. (TXG), an $18.1 billion medical equipment company. Medical equipment stocks ($DJUSAM) have been consolidating for the past 2-3 months, which has led to relative underperformance by the group as a whole. That has weighed on TXG as the stock has been downtrending for months — plane surpassing the group’s run higher ended in early September. But are our vision deceiving us? Is TXG stuff piled during this period of weakness?

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The AD line has been trending higher for months while price whoopee moves lower. That doesn’t happen too often and rarely to the extent we’re seeing here. Short-term, if TXG fails to hold gap support near 164 on today’s close, then a trip to test recent price lows closer to 159 squint increasingly likely — we’re nearly there. If 159 fails to hold, then flipside 10 dollars to the downside is quite possible. But, longer-term, the rising AD line could certainly be a bullish development. We’ll soon find out.

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Happy trading!

Tom Bowley, Chief Market Strategist

EarningsBeats.com

Tom Bowley

About the author:
is the Chief Market Strategist of EarningsBeats.com, a visitor providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has unsalaried technical expertise here at StockCharts.com since 2006 and has a fundamental preliminaries in public written as well, blending a unique skill set to tideway the U.S. stock market.

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