Tuesday, June 9, 2015

Boston Scientific Corporation (NYSE: BSX)

Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. The company operates in three segments: Cardiovascular, Rhythm Management, and MedSurg. It offers interventional cardiology products, including coronary stent systems used in the treatment of coronary artery disease; coronary technology products to treat atherosclerosis; intraluminal catheter-directed ultrasound imaging catheters and systems for use in coronary arteries and heart chambers, as well as peripheral vessels; and structural heart therapy systems. The company also provides stents, balloon catheters, wires, peripheral embolization devices, and vena cava filters to diagnose and treat peripheral disease; and biliary stents, drainage catheters, and micro-puncture sets to treat, diagnose, and ease benign and malignant tumors.
Take a look at the 1-year chart of Boston (NYSE: BSX) below with my added notations:
1-year chart of Boston (NYSE: BSX)
Over the last 8 months BSX has been trending consistently higher, while also forming a nice trend line of support (green). Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its relevance. As you can see, the market deems BSX’s trendline to be very important. In addition, the stock also has a 52-week high level of resistance at $18.50 (red).

The Tale of the Tape: BSX has a trend line support and an $18.50 resistance. A long position could be entered on a break above $18.50, or on a pullback to the trendline, with a stop placed below the level of entry. A short position could be entered if BSX were to break below its trendline.
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