Let's Check the Pulse of Boston Scientific

Medical device maker Boston Scientific Co BSX has been surging higher since October. Can the uptrend continue or do we need to take a pause? Let's check out the charts and indicators.

In this daily bar chart of BSX, below, I can see that prices have turned higher from a slight new low in October. BSX trades above the rising 50-day moving average line and above the rising 200-day line. 

The trading volume has not expanded during the advance of the past five months but the On-Balance-Volume (OBV) line does rise to confirm the price gains. The OBV line has been level since early February and suggests that maybe shares of BSX will stall in the near future. 

The Moving Average Convergence Divergence (MACD) oscillator has been correcting lower from early February but remains above the zero line.

In this weekly Japanese candlestick chart of BSX, below, I see a softening chart picture. Prices are still in an uptrend and trade above the rising 40-week moving average line. The three most recent candles combine to make a top reversal pattern which could be a reversal lower or a shift to a sideways market.

The weekly OBV line is pointed upwards but the weekly volume histogram shows a pattern of shrinking volume the past twelve months. The MACD oscillator is above the zero line but it has begun to narrow telling me that the trend-strength is weakening.

In this daily Point and Figure chart of BSX, below, I can see a potential upside price target in the $106 area.

In this weekly Point and Figure chart of BSX, below, I see the same $106 price target as the daily chart above.

Bottom line strategy: Aggressive traders could probe the long side of BSX on a pullback to the $65 area. Risk to $62.

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