December 19, 2010

Image by Doug Wallick via Flickr

Investors are finally realizing the potential turnaround at Boston Scientific. Stock is frequently on the Most Active List and the volume is monstrous. Traditional technical analysis interprets the chart as breakout on high volume and generates a strong buy signal at this point. Our research at The Arora Report shows that over the last few years, traditional technical analysis is increasingly failing with the emergence of very sophisticated new generation of traders who specifically hunt and destroy traditional technical patterns.

A new way to read the chart is that the stock is becoming too popular; too much popularity often results in reversals.… Please click here or the title below to read more.