• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Let Your Scans Do the Legwork: Finding Great Stocks to Trade
Stock

Let Your Scans Do the Legwork: Finding Great Stocks to Trade

by April 25, 2023
by April 25, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

April is Financial Literacy Month. As a retail trader or investor, you know the value of education. There’s always a new technique, tool, or strategy to learn. Sophisticated scanning tools can help identify stocks that could improve your trading process. Here’s an example of using scan results to analyze a stock before trading it.

A great daily habit for traders is to run scans to identify stocks to trade. It’s a methodical way to filter through the thousands of ticker symbols the stock market offers. One stock of interest, which showed up in a scan that looked for large-cap stocks that had a StockCharts Technical Ranking (SCTR) score crossing above 80, was Boston Scientific (BSX). Let’s analyze the chart of BSX.

After suffering a setback during the COVID-19 pandemic, Boston Scientific (BSX) has started showing signs of growth. The stock has an exciting pattern forming, which could make it a great stock to buy if the growth signs sustain. If things don’t go in the company’s favor, however, you may want to move on to another stock in your scan results.

Boston Scientific is announcing its earnings on Wednesday (April 26). Investors are likely waiting for the results before they decide to buy or sell. Will the stock continue its upward move after it reports?

The Long-Term View of BSX Stock

Looking at the weekly chart over five years, BSX is trading well above its 50-, 100-, and 200-week simple moving averages. The 50-week simple moving average (SMA) is crossing above its 100-week SMA. The 200-week SMA is showing a very gentle positive slope. A steeper upward slope would be more confirming of an uptrend.

CHART 1: A LONGER-TERM VIEW. Boston Scientific stock is trading above its 50-, 100-, and 200-week simple moving averages. The stock is trending higher, but will it continue? That may depend on its earnings report.Chart source: StockCharts.com. For educational purposes only.

Zeroing In: Daily Price Action

Let’s check the daily chart to see if the uptrend is in sync. The daily chart of BSX shows the 50-, 100-, and 200-day SMAs sloping upward. This agrees with what the weekly chart shows. The SCTR score displayed in the upper panel is above 80, and relative strength against the Health Care sector, using the Health Care Select Sector SPDR exchange-traded fund (XLV), is displayed in the lower panel.

CHART 2: DAILY CHART OF BSX STOCK. The stock is trending higher, but it remains to be seen if it will break through a key resistance level. If it does, the stock could go much higher.Chart source: StockCharts.com. For illustrative purposes only.

In addition to the overall trend, the daily chart shows some interesting patterns you should watch.

Trend direction. In late September 2022, BSX started trending higher, with a series of higher highs and higher lows. In mid-December, the upward price movement slowed, and the stock price went through a consolidation period. It started trending lower, but broke above that downward trendline on February 1, 2023 on higher than average volume. It looked like the beginning of an uptrend, but the upward price action stalled, and the stock trended lower.Upward move resumes. On March 14, price broke above the second downward trendline. This time, the stock price stayed above the downward-sloping trendline and continued moving higher. The stock price stayed above the third trendline up until April 21, when the stock had a massive selloff and closed below the upward-sloping trendline. The stock’s price dropped on heavy volume. Since then, the trendline has been acting as a resistance level. Support and resistance. After falling below the upward-sloping trendline on very heavy volume, will the stock break back above the trendline and resume its uptrend? Boston Scientific’s earnings results could hold the key. Let’s see if the third time’s the charm. 

The Waiting Period Begins

As long as the SCTR score stays above the 70 level, price breaks out above the resistance of the upward-sloping trendline, and Boston Scientific’s performance with respect to the Health Care sector remains strong, the stock could move higher, riding on a positive earnings report. But if Boston Scientific’s earnings are not up to mark, the stock could fall to its 50-day SMA, or even lower to its 100- or 200-day SMA.

The stock is trading close to its all-time high. So, if the earnings report is favorable and the stock moves higher on strong volume, there could be a lot of upside potential. If that scenario plays out and you decide to enter a long position, place a stop loss just below that upward-sloping trendline. A move below that trendline could send the stock lower.

Other Stocks from the Scan 

BSX was just one example. There are other stocks from the same scan that you could analyze. Here’s a list of some of them.

Cardinal Health, Inc. (CAH)Clorox Co. (CLX)Chipotle Mexican Grill Inc. (CMG)General Mills (GIS)Hershey Foods Corp. (HSY)Eli Lilly & Co. (LLY)Pinterest Inc. (PINS)

The Bottom Line

Scans are powerful tools that every trader or investor should use, and they can be as simple or complex as you want them to be. You can try using some of the Predefined Scans available on the StockCharts platform, or you can create one of your own. Add that to everything you’ve learned during Financial Literacy Month.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • The Ord Oracle July 25, 2023
  • The Halftime Show: Are Rate Cuts on the Horizon? Watch the Jobless Claims
  • The Halftime Show: Don’t Box the Invisible Man — EPS Reports
  • Stock Indexes Continue Winning Streak: Growth Stocks Still In the Lead
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Leaders Lost & Laggards Won
next post
Ohio House panel greenlights $88.1B state budget, $200M in tax cuts

You may also like

Rules-Based Money Management – Part 7: The “Dancing with the...

May 30, 2024

Value Stocks Continued Strength Might Depend On One Area Of...

January 26, 2024

Earnings Preview: The Technical Temperature

January 29, 2024

Cutting-Edge Seasonality Insights & Bitcoin 2024 Halving Impact

November 17, 2023

What Happens to GOOGL When This Negative Divergence Executes

May 28, 2024

MEM TV: Market Uptrend Endures Ahead of BIG Earnings Next...

January 27, 2024

The Wisdom of Jesse Livermore, Part 6

May 24, 2023

It’s Hard to Fight This Current

February 18, 2023

Which Sectors Benefit Most From the Large- to Mid- &...

December 29, 2023

New Industry Group Golden Cross Indexes and Silver Cross Indexes

February 4, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp up Max production, CEO says

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025
    • Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

      May 29, 2025
    • E.l.f. Beauty to acquire Hailey Bieber skin care brand Rhode in up to $1 billion deal

      May 29, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,764 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,470 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,450 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,430 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,307 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Nvidia results spark global chip rally

      May 30, 2025
    • Boeing to resume airplane deliveries to China next month, ramp...

      May 29, 2025
    • Nuclear Power Trio: OKLO, SMR, and CCJ in Focus

      May 29, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,104)
    • Investing (538)
    • Stock (2,578)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    MEM TV: Breakouts and Downtrend Reversals...

    May 20, 2023

    GNG TV: “Building” Go Trends in...

    May 18, 2023

    UPSidedown Earnings Sink Stocks

    April 26, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here