Since about two years ago when I first analyzed this stock for the long-term forecast, the stock was in the phase of establishing brand-new uptrend. Today, the value of the stock nearly doubled. It’s interesting when this stock was trading at $13ish, not many traders were talking about it; but now, it seems to get much more attention now that the stock is trading at $24ish.
As you can see in the first chart that was screened on 12/18/14, as the stock retests the old-resistance as new-support while staying above monthly-20SMA (see arrow), that was a complete reversal signal in the long-term, and this stock was ready to establish new uptrend.
Many times we are so occupied with a daily movement/fluctuations, we completely ignore/miss the big picture. This is precisely how I like to trade, understanding the big picture, and continue to follow the direction of the trend.
I like observing stocks that has either crashed or has seen a steep correctional-move, because when everyone is panicking and freaking out, that’s when you look for the opportunity. I remember, recently, we saw the Brexit panic in the overall market, and everyone was panicking and freaking out shouting out crazy things; we stayed calm, and was able to benefit it from that panic (see video on this).
Let’s take a look at the updated chart below.
*Above chart featured on Part 1
New All-Time High?
Above chart was screened today after the market close, and as you can see this stock is now trading at $24.41 with healthy uptrend development (looking at the big picture). you can able to see that the monthly-20SMA (simple moving average) continues to act as support supporting the move higher. Sometimes, trading can be simple if you know where to look.
I conclude, that as long as this stock stays above this moving average, I believe it will continue higher, and even possibly, make new all-time high in several years. And we are going to continue to trade this stock to the upside.
We have been using LEAPS (expiration 1 year or more) with Deep In The Money – Call Options, so we can able to hold through time to able to ride the majority of the primary-term uptrend. Again, this is how we like to trade to ride the big trends, and ignore little tiny sparks here and there on a daily basis. I have been documenting status of my trade, and the progress of this trend on BSX as you can check out my past articles below.
We’ve decided to close all of our holding today, due to the overbought nature on the weekly-chart. The stock could move higher, but I do think a pullback might be in stored. I am looking to engage another position once we see pullback in the next few months.
It may continue to grind higher, but I think the odds are stacking up against the buyers at this point. I would like to wait until these oscillators reset, and the price to pullback before entering back again in this stock. Again, I am bullish in this stock long-term, so any correctional-move will be an opportunity to buy.
Once we engage another position, I will write Part 7 of this article. Stay tuned.