Boston Scientific (BSX) was confined mostly to a tight $3 trading range since early last year, but its recent breakout above its 2015 highs shows promise for gains toward $30 in the months ahead.
This daily chart of BSX, above, shows the narrow trading range that has kept the stock of this company in check. There have been some intraday dips below $16 but they were very brief. Accompanying the new highs are some bullish technical signals. Prices are above the rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line is moving up from a February low but has not yet made a new 52-week high. Our price momentum study in the bottom panel confirms the new price highs.
I could characterize this weekly chart, above, of BSX as "smooth sailing." Prices are above the flat 40-week moving average line. The OBV line has been steady to positive the past three years. Last, the Moving-Average-Convergence-Divergence (MACD) oscillator crossed back above the zero line for another go-long signal. A breakout from a $3 trading range would suggest an upside target of $22 (adding $3 to the breakout at $19), but a point-and-figure measurement gives us a longer-term price target of around $30. A close back below $17.50, however, would put this forecast in jeopardy.