BSX closes lower for the 2nd day in a row
Boston Scientific Corporation (BSX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BSX ended Wednesday at 40.19 losing $0.83 (-2.02%), significantly underperforming the S&P 500 (-0.46%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 40.88, the market confirmed its breakout through the prior session low after trading up to $0.94 below it intraday.
Daily Candlestick Chart (BSX as at Sep 16, 2020):
Wednesday's trading range has been $1.34 (3.25%), that's far above the last trading month's daily average range of $0.85. 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 higher than usual for BSX.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on September 11th, BSX actually gained 2.06% on the following trading day.
Prices are trading close to the key technical support level at 39.75 (S1). The share closed below the 20-day moving average at 40.51 for the first time since August 21st.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Boston Scientific. Out of 274 times, BSX closed higher 54.38% 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 63.50% with an average market move of 1.59%.