We have looked at Tandem Diabetes Care (TNDM) in the past and it is starting to become more attractive as it refills from a tough earnings report. Tandem makes insulin pumps that help patients manage type 1 diabetes and the market for these pumps has been shifting. One of the early players in this space, Medtronic, has struggles to keep their quality level as high as the competition. Tandem rose as it was one of the first to integrate with Dexcom, a company with the leading continuous glucose monitor.

Just as it looked like Tandem had a clear pad to launch from, Ominpod from Insulet pushed hard to grab a chunk of the insulin pump space. Medtronic, who had the deepest pockets of the field, may have hurt themselves by creating their own continuous glucose monitoring solution to integrate with their pump and got some pushback when it’s performance and accuracy was disappointing. As they lose market share, the other players are grabbing it up.

From a trading perspective, the background is great but lets look at the chart again.

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A couple key points stand out. First, For the last month and a half, TNDM is gaining ground. It has been a game of inches but a 10% climb is encouraging. Second, it has plenty of room to run. It had been pushed down by the broader market even before the earning reaction leaned on it. Now, with the technical perspective in view add in the competitive race in a tightening field. Ultimately, it is likely that both Insulet (PODD) and TNDM will be winners, but TNDM has the potential to grow more.

We will be keeping an eye on these as always.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily