Boston Scientific Upside Looming?

Published on Monday, 09 August 2010 01:45 Written by Christopher Lynn

New York, August 9th (TradersHuddle.com) - Shares of Boston Scientific Corporation (NYSE:BSX) ended the trading session higher by $0.11 or 1.93% from its previous close. Boston Scientific's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.

Boston Scientific Corporation (NYSE:BSX) develops, manufactures, and markets minimally invasive medical device, which are used in interventional cardiology, cardiac rhythm management, and peripheral interventions, mong others.

Boston Scientific's recent stock range has been formed by a trough where calculated support was defined at $5.50 and by a peak that established the resistance level at $5.88, which could be used by traders planning their trades.

Traders wanting to establish a position in Boston Scientific or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration: