BSX is showing the tiniest of macd bull signals, rising to 0.001107 above the zero line. Is that a bull signal we can believe in?
BSX gapped down hugely after earnings were released on Feb. 11, and has been trading mainly sideways for the past six trading days.
There was a Person's Proprietary Signal on the bull side on Monday. The money flow index dipped below the oversold line and has since move up to barely within the neutral zone.
More broadly, the stock has been on a slow decline, with long sideways stretches, since February 2007. So there is nothing about this chart that would lead me to declare it to be in an uptrend.
On the upside, I can count resistance mid-way through the gap (prices often retrace to that point), at about $7.95. And I can count resistance at $8.25, the area of congestion where BSX was trading before the gap.
Support is running around $7.50.
I would not take a directional trade on this. I might take a sideways trade, but very nervously.
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