One of the stocks we analyzed in Tuesday's Daily Market Commentary webinar was Tandem Diabetes Care Inc. (TNDM), a medical instruments stock that after dropping from a high of $302.50 in early 2014 to a low of $2.14 in early 2018 has suddenly rebounded more than 700% during the past four months.
TNDM is flying high on the hope the company is going to successfully bring its closed-loop, artificial pancreas system to market before its rivals Medtronic PLC (MDT) and Insulet Corp. (PODD) introduce theirs. TNDM’s closed-loop system both monitors blood sugar levels and dispenses insulin in response to those measurements. Should it be successful, TNDM could lock up market dominance in the diabetes market for years to come.
TNDM is sitting just below long-term resistance at $18 – a price level that served as support when the stock was consolidating during late 2016 and early 2017. If it can break up through this level, it may have clear path up to long-term resistance at $31.