Boston Scientific
Typically, we see symmetrical
trading opportunities present themselves on intraday and daily
charts. It is much less frequent to catch a possible symmetry trade and the
higher time frames like Weekly and Monthly charts. Let’s bullet-point this
weekly chart:
- Key Fibonacci price
resistance zone from 38.37-39.69.
This zone includes
the .786 retracement of week ending July 24, 1999 (yes, 1999) high to the
December 9, 2000 low.
This is critical
in that typically, when the .786 retracement is broken to the upside, a
stock will generally challenge old highs and make new ones.
- The previous major
rally on this chart was from Nov. 7, 1998, to July 24, 1999. This rally was
27 points. The current rally that started Dec. 9, 2000, and up to last
week’s high was right at 27 points. MAJOR SYMMETRY!
- So, after looking at
the weekly chart, I drilled down to the daily chart and found that on Thursday,
we had a major reversal candlestick.
Bottom line: I would not
be surprised to see a sizeable selloff occur in this stock, based on this data.
Plus, we have a gap to fill, down around 32-33.
The flipside to this analysis is
if Boston Scientific
(
BSX |
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PowerRating) blows up through our resistance zone. If that happens, then this stock
is telling us how much strength is there and that we will be on our way to challenging
the $47 high set in July 1999.
Good Night