NFTRH+; Opportunity Ahead in This Medical Device Co.

Healthcare in general and Medical Devices in particular have been very strong lately during the stock market rally. What the device sector also has is a smoother fundamental profile than most sectors during economic soft spots and recessions.

Preamble aside, BSX dropped hard on a sales miss that I don’t think is a big deal, beyond the initial knee jerk disappointment of the momo analysts who’d been on it. Being more portfolio tweaker than trader I considered buying the initial drop since the downside from here does not appear large. But instead I sat on my hands.

That brings us to today. For this update to work out that would have to be a bear flag forming to test the underside of the SMA 50, because for the purposes of this update the buy area is lower; either at the SMA 200 around 41 (more likely, IMO) or on a gap fill below 39 (less likely, IMO).

bsx

The weekly chart cross references the above with a trend channel from early 2018 and lateral support. A BSX buyer could do well by taking it at or just below the SMA 200 above… IF that is a bear flag on the chart above.

I don’t have much of a target on it since it is an uptrend channel and not pattern, but if this were to work out the implication would be for a new high, possibly to the channel’s upper bound again months down the road (broad market willing, always a consideration). A tight stop loss would be a break below 39.50 and a more lenient one – but one which should be respected – would be a loss of the previous low below 38.

bsx

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.