Bulls taking Control of Boston Scientific?

Published on Monday, 20 August 2012 04:27 Written by TradersHuddle Wire

New York, August 20th (TradersHuddle.com) - Shares of Boston Scientific Corporation (NYSE:BSX) ended the trading session higher by $0.08 or 1.45% from its previous close. Boston Scientific's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the 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 was formed by a trough where calculated support was defined at $4.79 and by a peak that established the resistance level at $5.56. This range could be used by traders managing their positions.

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 step in with a bid.

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: