Boston Scientific Corporation (BSX) Technical Analysis

Price Action Analysis

Overview

The price action for BSX shows a pronounced downtrend in the near term, with a sharp deterioration in the most recent sessions. The latest price sits near the mid-$70s, well below recent swing highs, signaling a strong bearish tilt on both daily and weekly horizons.

Step-by-step observations

Daily chart action (last 3 months)
- Trend direction: Dominant downtrend with a sequence of lower highs and lower lows. The most recent session produced a decisive downside move, creating a new near-term low.
- Breakouts and retests: A breakdown through prior near-term support around the mid-to-upper $80s–$90s area occurred, followed by continued weakness. There have been attempts at short-term relief rallies that failed to push back above key levels.
- Candlestick structures: The latest candles are bearish with sizable bodies, indicating sustained selling pressure. Occasional intraday bounces have failed to establish a durable up-move.
- Volume behavior: Volume spikes accompany the recent downside, consistent with distribution during a liquidation phase. This suggests the movement is driven by stronger selling interest rather than healthy accumulation.
Weekly chart action (last 2 years)
- Trend direction: The longer-term trend remains negative, with lower highs and lower lows visible in the weekly series.
- Key levels: Previous longer-term resistance zones around the low-to-mid $90s and the prior swing highs around the $100+ area continue to act as overhead resistance on any potential upside attempts.
- Volume context: Weekly volume patterns show elevated activity during the down moves, reinforcing the sense of deteriorating price structure over the medium term.
Summary view
- The price is currently testing a vulnerable area after a robust down move, with a historically clear resistance band above and a near-term support region around the latest swing lows. The pattern is more consistent with a bearish structure in the immediate horizon unless a meaningful shift in momentum occurs.

Technical Indicators

Key readings (current snapshot)

Indicator	Current Reading	Interpretation / Implication
Price (BSX)	$75.50	Near-term bottom pressure; leaves major up-move attempts challenging in the immediate term.
50-day Moving Average (MA)	≈ $94.70	Price well below the 50-day MA, signaling short- to medium-term bearish trend.
200-day Moving Average (MA)	≈ $100.40	Price significantly below the 200-day MA, indicating a longer-term bearish context.
RSI (14)	≈ 22.3	Strongly oversold territory; potential for a short-term bounce, but not a reversal signal by itself.
MACD (12,26,9)	MACD ≈ -2.20; Signal ≈ -1.20	Negative MACD with bearish momentum; needs a constructive cross to suggest a near-term reversal.

Notes:

The current price is decisively below both major moving averages, which reinforces the bearish backdrop.
RSI shows severe oversold conditions, suggesting a potential short-term stabilization or a modest bounce if selling pressure eases.
MACD remains in negative territory with no immediate bullish cross, indicating ongoing downside pressure unless momentum shifts.

Volume & Momentum Analysis

Volume on the latest downside move is elevated, consistent with intensified selling and possible distribution rather than accumulation. This aligns with the price moving through established levels without a reliable bounce.
Momentum indicators (RSI, MACD) are signaling oversold conditions but have not yet produced a bullish reversal signal. The risk remains to the downside unless a clear higher-lows sequence develops and momentum begins to turn constructive.
In summary, the current setup shows:
- Bearish momentum on price and trend indicators.
- Oversold yet unconfirmed bullish signals from RSI and MACD.
- Volume supporting continuation of the down move in the near term.

Key Buy/Sell Levels

Current price: BSX at approximately $75.50

Proposed buy zones (with touch status and distance from current price)

Zone A: Immediate support around $75.00–$76.50
- Has it been touched? Yes — recent near-term low around $75.5 has been observed.
- If price remains around this zone: potential basing area; close monitoring for a bullish reversal candlestick or a high-volume stability day.
- Buy zone rationale: Proximity to the latest low; potential liquidity zone where demand could emerge if buyers step in.
Zone B: First upside re-test target around $82.00–$84.00
- Has it been touched? Not yet (as of current price).
- Distance from current price: approximately +$6.50 to +$9.50, which is about +8% to +13%.
- Buy zone rationale: A reclaim toward this level would test minor resistance and the underside of the recent down-move. A successful rejection here could signal a short-term improvement in momentum.
Zone C: Intermediate resistance and potential pullback zone around $90.00–$92.00
- Has it been touched? Not in the present immediate move; a climb above Zone B would bring this into play.
- Distance from current price: approximately +$14.50 to +$16.50, about +19% to +22%.
- Buy zone rationale: Aligns with prior swing highs and near-term overhead resistance. A breakout above this zone would require substantial momentum but could precede a more meaningful bounce if accompanied by improving volume.
Zone D: Longer-term upside target around $95.00–$97.00 (near the 50-day MA vicinity)
- Has it been touched? Not yet.
- Distance from current price: approximately +$19.50 to +$21.50, about +26% to +28%.
- Buy zone rationale: If price can reach this area and hold, it would test the confluence of the 50-day MA and prior swing highs, potentially marking a more substantive shift in trend.

Trendline considerations

Horizontal support at approximately $75.0–$76.0: key near-term anchor for buyers. Expect breakouts above this level to require meaningful follow-through from oversold conditions.
Overhead resistance bands near $90–$92 and $95–$97: these zones have historically represented hurdle levels where selling pressure resumes; a move into these ranges would need sustained upside momentum and higher-volume participation to be constructive.

How these levels relate to technical context

The $75.0–$76.0 area corresponds to the most recent annualized support and recent low, where volume spikes during the downturn indicate potential area of demand if buyers re-emerge.
The $82–$84 zone represents a micro-test area to re-establish an up-move, aligning with prior consolidation floors and potential MA interaction.
The $90–$92 and $95–$97 zones align with prior swing highs, overhead supply, and the vicinity of the 50-day MA, providing a technical framework for potential momentum-driven bounces if price can sustain gains with improving volume.

Trendline drawing (summary)

A horizontal support line around $75.0–$76.0.
A resistance line around $90.0–$92.0 (and another near $95.0–$97.0 as a secondary hurdle).
Lines extend slightly beyond the current time to anticipate near-term movement and to capture potential reactions to the identified levels.

Technical Outlook & Summary

Price action context
- The prevailing structure remains bearish on both daily and weekly horizons, with a recent acute downside move driving BSX to multi-month lows. The price has breached key previous support levels and is trading well below major moving averages, reinforcing the downtrend.
Volume behavior
- Elevated selling volume during the latest downswing suggests distribution. A potential base or pause could form if price stabilizes near $75–$76, but confirmation would require higher lows and improving volume on reversals.
Technical signals
- Bearish momentum remains intact as reflected by MACD below the zero line and a lack of immediate bullish cross.
- RSI is deeply oversold, signaling potential for a short-term bounce, but no automatic reversal is guaranteed without a shift in price action and volume.
- Movement back above the 50-day MA (≈$94.70) would be a meaningful trend shift; currently, the price remains well below it, indicating ongoing downside risk unless a robust rally develops.
Trading considerations
- Near-term risk remains skewed to the downside until there is a clear breakout with sustained volume above the critical resistance bands.
- A cautious approach would monitor price action around the Zone A support and the Zone B re-test area for evidence of a stabilization or a reversal pattern.
- Any buying should be contingent on favorable risk-reward setups, including confirmation of a higher low, a bullish candlestick pattern near support, and a volume surge on a test of Zone B or higher.
Bottom line
- BSX currently exhibits a bearish price structure with oversold momentum indicators offering limited but notable potential for near-term bounce. Key levels to watch include the immediate support around $75.0–$76.0 and the overhead zones near $90–$92 and $95–$97 for potential resistance and possible turning points if buyers re-enter with conviction.

If you’d like, I can refine the buy zones with a more precise short-term price action scan (e.g., identifying intraday pivot points or specific candlestick formations near Zone A/B) or expand the technical indicators to include additional momentum or volatility measures.

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