I plan to add more technical analysis to my articles going forward since many traders adhere to it, which by itself makes it relevant. Some of the more academic financial professionals claim it is akin to practicing voodoo, but I personally think it has merit. Charts are a footprint of how a stock has acted in the past and they do give clues as to where the future lies at times, although no method is foolproof. These technical articles will be more about the actual chart than the company’s fundamentals.
The first stock I want to discuss is a company that has fallen on hard times after being a favorite of the momentum players several years ago. Judging by the chart, I see good times ahead for shareholders. The company is called Boston Scientific (BSX) and it makes and markets medical devices used in various interventional medical specialties worldwide.
I love the chart, especially the breakout above $7 on high volume in December. The chart also shows a “golden cross” where the 50 day moving average breaks above the 200 day average. This is one of the bulls’ favorite chart patterns. I also like the small pullback on low volume over the past few days. You always want to see the down days have less volume than the up ones during an uptrend.
On the fundamental side, the company held its first analyst meeting in four years back in November and CEO Ray Elliott was optimistic that profitability will increase over the next few years. Part of the plan for success includes more focus on R&D and expanding into emerging markets.
Getting back to the technical picture, I would like to see some of the recent gains digested by some sideways action or more low-volume small down days in order for the chart to recharge. The next upside breakout could take the stock near the $10 level.
Getting Technical: Bullish Chart Signals More Gains Ahead is an article from: 
