Boston Scientific Tests Key Support At 102.50 As Technicals Signal Consolidation

Boston Scientific (BSX) declined 0.60% to close at $103.16 in the latest session, testing support near the day's low after briefly challenging resistance around $104.56. This price action serves as a focal point for a multimodal technical assessment of BSX's trajectory.
Candlestick Theory
Recent sessions reveal bearish signals, with July 22nd’s candle closing at the low ($103.16) after being rejected near $104.56, forming a "shooting star" pattern that suggests exhaustion of upward momentum. This follows a cluster of candles with upper wicks near $105 (evident on July 18th and 21st), reinforcing resistance at $105.00–$105.40. Support emerges around $102.25–$102.50, coinciding with the July 18th low. Sustained trading below $103.00 may trigger a test of the $100–$101 psychological floor.
Moving Average Theory
The current price sits below the 50-day moving average (approximately $104.20), signaling short-term bearish pressure. However, it remains above the 100-day (~$101.80) and 200-day (~$96.50) averages, preserving the longer-term uptrend. The 50-day’s flattening trajectory suggests consolidation, while the sustained 100/200-day golden cross underscores structural bullishness. A close above $104.20 would alleviate near-term downside risks.
MACD & KDJ Indicators
MACD lines are converging near the zero line with a bearish histogram profile, reflecting weakening momentum. While not yet in a decisive bearish crossover, this hints at near-term consolidation. KDJ oscillators recently exited overbought territory (K-line peaked at 85 on July 17th) and are now approaching oversold readings (J-line near 30). This divergence—where MACD suggests neutrality but KDJ nears oversold—warrants vigilance for a potential reversal if bullish momentum re-engages.
Bollinger Bands
Bollinger Band width has contracted by 18% over the past two weeks, indicating declining volatility and potential for a directional breakout. Price is testing the lower band ($102.80), typically a support zone during uptrends. A confirmed bounce here could retest the middle band (~$104.00), while a decisive breakdown may trigger a volatility expansion targeting $101.00.
Volume-Price Relationship
Distribution patterns emerge as volume spikes accompany recent down days (July 22nd: 7.92M shares; July 18th: 8.57M), exceeding the 20-day average volume of 7.2M. This contrasts with lower volume on recovery attempts (July 21st: 5.53M). Such volume divergence reinforces resistance near $105 and suggests additional consolidation is required before sustainable upside.
Relative Strength Index (RSI)
The 14-day RSI has retreated from near-overbought conditions (68 on July 17th) to a neutral 48, erasing directional extremes. While the current reading doesn’t signal immediate reversal potential, its positioning within the central band (40–60) aligns with consolidation expectations. A drop below 40 would strengthen the case for a technical pullback toward $101.
Fibonacci Retracement
Applying Fibonacci to the major swing low of $99.74 (June 13th) and high of $107.50 (July 1st) identifies critical retracement levels. The 61.8% level ($102.70) aligns with recent support and Bollinger Band proximity, while the 50% level ($103.62) capped recovery attempts on July 18–21. A breach of $102.70 may extend declines toward the 76.4% retracement at $101.50. Conversely, reclaiming $103.62 could catalyze momentum toward $105.40 resistance.
Confluence arises between Fibonacci support ($102.70), Bollinger Band support ($102.80), and volume-based resistance near $105.00, suggesting rangebound action is probable. Key divergences appear between KDJ (approaching oversold) and MACD (neutral-bearish), while volume dynamics conflict with the primary uptrend. Probabilistically, the weight of evidence currently favors consolidation between $102.50–$104.50, with a close above $105.40 needed to resume the bull trend, or below $102.00 to signal deeper correction.