BSX breaks back below 200-day moving average
Boston Scientific Corporation (BSX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BSX ended the month 9.85% higher at 38.57 after losing $0.37 (-0.95%) today, strongly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BSX as at Jul 31, 2020):
Friday's trading range has been $0.95 (2.45%), that's slightly above the last trading month's daily average range of $0.89. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BSX.
After trading down to 37.95 earlier during the day, the share bounced off the key technical support level at 38.11 (S1). The failure to close below the support might increase that levels significance as support going forward. Boston Scientific closed back below the 200-day moving average at 38.74. When this moving average was crossed below the last time on February 24th, BSX lost -2.85% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Boston Scientific. Out of 302 times, BSX closed higher 52.98% 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 59.60% with an average market move of 1.51%.