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Boston Scientific was a recent trade idea for CappThesis clients. Since it has yet to break out, I wanted to both share the idea with CNBC Pro subscribers and also highlight the process I typically use to come up with trade idea candidates like this. This involves starting with a plain chart and then working through different variations, with the goal of building a stronger case for it to become a recommended “chart trade.” BSX initially caught my eye through my normal process of screening for technically constructive stocks. Sometimes this is done using predefined screens, while other times it’s simply a matter of reviewing hundreds of charts manually — a habit I’ve developed after decades of doing this work. Over time, one begins to take a liking to certain chart structures, and after nearly two years of writing articles, subscribers understand that many of the patterns I focus on are classical chart formations, particularly those forming near all-time highs. That’s exactly what BSX has been doing in recent months and weeks, as shown on this very plain chart. The next step, of course, is drawing the lines to confirm whether a recognizable pattern is forming. From my perspective, BSX appears to be building a large cup-and-handle formation, with a potential breakout zone in the $106–$108 range. Other traders may view the setup differently, but I find it far more useful to cite a breakout “zone” rather than specific price level, since price swings are normal. In other words, even an ultimately successful breakout may go through a few whipsaws before the big move finally materializes. Looking at this chart more closely, a few other interesting aspects stand out. If we focus on the price action since May, we can actually identify two additional bullish patterns—one in green and one in black—both of which resemble inverse head-and-shoulders formations. Taken together, these smaller patterns form part of the second half of the larger cup-and-handle structure. In effect, we’re looking at three potential bullish patterns developing simultaneously. This means that if BSX does break through the $106–$108 zone—which it is attempting to do right now—we could see three bullish breakouts occurring at once. That scenario provides an even greater sense of conviction that a sustained breakout could follow. Sometimes it’s difficult to imagine a stock moving much higher when it’s already testing its former highs. In fact, some traders refuse to buy breakouts at all-time highs because of how far a stock needs to advance just to reach that point. One useful trick to view this differently is simply to add more space above the chart. Depending on the trading platform, this can be done in various ways. On StockCharts.com, for example, simply adding any indicator above the price creates the visual impression that BSX has room to advance — especially when viewed over a multiyear horizon. In fact, we actually need to add more space to the top of the chart in order to properly display the measured move target. In this case, we measure the pattern from the April low up to the most recent high, which projects a target near $128. That’s not only a good deal higher than the current price, but also well above the prior high point—underscoring the potential strength of this setup. Even after going through those steps, some prospective investors could remain unconvinced that a stock can move materially higher than its prior high point. That’s why another step I often take is to zoom way out — switching from a daily chart to a weekly (and sometimes monthly) chart, changing the scale from linear to log, and highlighting how often a stock has already broken out from a multiyear or multimonth bullish pattern and continued higher over time. Not every stock shows this, but in the case of BSX, that’s exactly what we’ve seen since 2022. The stock has broken out to new highs four separate times from patterns very similar to the current one. And each time, it didn’t seem likely that there would be significant additional upside—but the stock proved otherwise. Because BSX remains in a long-term uptrend, it tends to use extended consolidation phases as launching pads for the next leg higher. If that pattern holds again, BSX could once more leverage the bullish formations we first identified on the daily chart—and in doing so, potentially achieve the $128 target… and beyond. — Frank Cappelleri Founder: https://cappthesis.com DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. 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