Watch These Dexcom Price Levels as Stock Plunges After Guidance Slashed [Video]

Shares in Dexcom (DXCM) lost more than a third of their value in extended trading Thursday after the medical devices company posted second-quarter results that came in below Wall Street expectations and slashed its annual revenue forecast.

Below, we zoom out on Dexcom’s weekly chart and use technical analysis to identify important price levels to watch out for amid earnings-fueled selling.

Dexcom shares have oscillated within a 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 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, is expected to be lower after the company’s disappointing sales outlook.

Despite the bears looking likely to take control in the short term, investors should monitor four …