Breakout In Tandem Suggests 20% Upside
Shares of Tandem Diabetes Care have been consolidating sideways in a range between $52 and $74 for a full year. Now, the stock has broken out above the $74 resistance level, successfully tested that level as new support, and is now trading at all time highs. A year of sideways consolidation is a long enough basing period to create significant upside price targets. For Tandem, the measured move price target is $96, derived from the difference of the previous trading range, added to old resistance. This represents potential upside of 20% from current levels. This provides a favorable risk/reward profile of 7% downside with a stop loss at $74 for 20% upside potential.