Past Articles: Part 1 | Part 2 | Part 3 | Part 4 | Part 5
Long-Term Forecast
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.
BSX Monthly-Chart with 20SMA
*Above chart featured on Part 1
BSX Monthly-Chart with 20SMA
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.
Our Status
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.
*Past Articles: Part 1 | Part 2 | Part 3 | Part 4 | Part 5
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.
Overbought Nature
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.
BSX Weekly-Chart With The Oscillators
