BSX closes within prior day's range after lackluster session
Boston Scientific Corporation (BSX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BSX finished the week 0.28% higher at 42.31 after gaining $0.13 (0.31%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.19 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BSX as at Feb 14, 2020):
Friday's trading range has been $0.33 (0.78%), that's far below the last trading month's daily average range of $0.75. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BSX. Prices continued to consolidate within a tight trading range between 41.81 and 42.75 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 4th, BSX actually lost -0.61% on the following trading day.
Prices are trading close to the key technical resistance level at 42.75 (R1). After having been unable to move above 42.47 in the previous session, Boston Scientific ran into sellers again around the same price level today, failing to move higher than 42.41.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 42.75 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 41.81 where further sell stops could get activated. With prices trading close to this year's low at 41.65, downside momentum might accelerate should the share break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Boston Scientific. Out of 710 times, BSX closed higher 51.83% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.58% with an average market move of 1.27%.