Technical Analysis of Financial Markets

Thursday, December 07, 2006

Boston Scientific Corp. (BSX)

Cardiovascular, endosurgery and neuromodulation medical devices developer Boston Scientific has seen stock price decline some 216% in a steady downtrend over the past 3 years. However, price action today has just managed to close marginally above the trendline breaking out of the downtrend. Perhaps a more plausible signal of a trend-reversal will be a test of the 14.6% Fibonacci extension level. Stents, which are tube-like, metal-mesh structures are placed into the arteries of heart attack survivors and high-risk patients causing expansion for blood flow. Variants include drug-coated blood-thinning stents which prevent clotting. However, the FDA is probing the drug-coated version of these stents as they may ironically be causing the reversal effect of creating blood clots leading to heart attacks. Deutsche Bank has a Buy rating, downplaying any significance:

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