Shares of Boston Scientific (BSX) have had a nice bull run so far this year, and it looks like there is more upside for this name in the months ahead.
Looking at this daily chart of BSX, above, we can see prices stuck in a sideways trading range until March. Prices began to rally, and in April we got a gap to the upside.
Gaps in trends are called runaway gaps or measuring gaps. As a measuring gap, we get a short-term price target of $25. Prices are above the rising, 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line turned up strongly in February, telling us that buyers of BSX became more aggressive. Momentum in May has slowed.
This weekly chart of BSX, above, shows prices above the rising, 40-week moving average line. The OBV line is rising on this timeframe, too. The Moving Average Convergence Divergence (MACD) oscillator is very bullish right now. With a positive short-term and long-term picture, traders could look to buy BSX on any shallow dip towards $22 and add on new highs above $23. A close below $20 would turn the short-term picture neutral.