Boston Scientific Water TowerImage 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. We suggest taking partial profits right here around $7.65 and protecting rest of the profits with tight trailing stops . This simple strategy allows participation in further run from here, but also locks in profits to date.

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