BSX closes above its opening price after recovering from early selling pressure
Boston Scientific Corporation (BSX) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
BSX ended the week 12.37% higher at 30.61 after losing $0.81 (-2.58%) today on low volume, but still outperforming the S&P 500 (-3.37%). Trading up to $0.85 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BSX as at Mar 27, 2020):
Friday's trading range has been $1.92 (6.33%), that's slightly below the last trading month's daily average range of $2.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BSX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 18th, BSX gained 3.78% on the following trading day.
Prices are trading close to the key technical support level at 28.87 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 31.82 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Boston Scientific. Out of 815 times, BSX closed higher 51.66% 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 54.11% with an average market move of 0.61%.