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).
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.
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.
