At present the technicals do not indicate STJ as a buy. Indications are that those who bought based on a potential buyout by JNJ continue to exit. The short interest has declined in the last report also and the money flow slope is down. Upward resistance is found at 45.16 and there is no support level in the current downtrend.
Two issues to watch are:
The BBands are tightening and if this continues to tighten in would indicate a breakout which could be in either direction.
The GDT shareholders vote on the BSX merger next Friday therefore , as it is now expected, the buyout with BSX should go through. However ther are outside chances that it may not. If it is finalized then STJ MAY come into play.
Another positive, albeit small, is the in FEB Fidelity raised it,s position in STJ to 9.92% which is just under the 10% level of being an insider.
Watch it closely throughout next week to see if it reverses.
Please forget all the technical chatter. The bottom line is that STJ is underpriced and currently reflecting absolutely notta of a buyout premium. I have no idea where the bottom is nor does anyone else. And, yes i've lost plenty and have been buying all the way down. But, don't call me stupid just yet. I do know STJ is worth $70 plus in a buyout which will eventually come. Of course I don't know when, BUT I will not miss the boat. For when the announcement comes it will be too late for all the techies to jump on board.Once the GDT buyout is done in 2 weeks or so, and earnings are announced we should see STJ rise. And, I can even see a bidding war for this stellar company.
I wish you the best of luck. It's not that STJ is a bad company it's just out of favor along with MDT,JNJ and others. Also there is a posibility of a buyout in the future but I do not see this potential happening until after the GDT buyout closes.
Some of us use technical analyses for different purposes as along with FA it provides insight into either an entry or exit point. We may like a stock but wait for the right time to enter.
I post my technical views so that interested persons may at least see what others, besides pumpers or shorts, can get a fair outlook.
I am neither long or short STJ but am considering a purchase but at my price point based on technicals.
I presume that you would be happy to be a long term holder of STJ no matter what happens and it is a good company for that purpose.