BSX closes higher for the 5th day in a row
Boston Scientific Corporation (BSX) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, BSX ended the month 1.36% higher at 37.99 after gaining $0.52 (1.39%) today, outperforming the S&P 500 (0.48%). Trading up to $0.98 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BSX as at May 29, 2020):
Friday's trading range has been $1.33 (3.53%), that's above the last trading month's daily average range of $1.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BSX.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
Boston Scientific managed to close above the 100-day moving average at 37.55 for the first time since February 21st. When this moving average was crossed above the last time on February 19th, BSX actually lost -1.21% on the following trading day. After having been unable to move above 37.99 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 38.03.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to March's high at 39.36 we might see further upside momentum if potential buy stops at the level get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Boston Scientific. Out of 27 times, BSX closed higher 62.96% 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 59.26% with an average market move of 0.27%.