On July 17
we mentioned that a double top pattern
formed on the chart of Boston Scientific Corp.
). We noted that this pattern is used by the bears to suggest that the downtrend would continue and that short-term traders would watch for a build up in selling pressure. As you can see from the chart below, the stock was pushed dramatically lower after it fell below the $15.25 support. The good news for the bulls is that they've managed to recoup some of the loss over the past few weeks. However, I don't think they're out of the woods yet. There is still plenty of overhead resistance (200-day moving average, resistance from the double top etc) standing in the way of a move higher. It wouldn't be surprising to see the bears step in and push the stock back toward the August low.