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?
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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Tom Bowley, Chief Market Strategist
Tom Bowley 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.