Boston Scientific

We're seeing the exact same setup in shares of $18 billion medical device stock Boston Scientific (BSX) right now. Like Yahoo!, BSX is a textbook symmetrical triangle trade, coiling between its own pair of converging trend lines. The big difference is where shares of BSX are sitting right now.

>>4 Big Stocks on Traders' Radars

The buy signal comes on a breakout to the topside of the pattern, currently at $13.70. That means that BSX is testing a breakout in this morning's session. Traders can be a little more aggressive with a buy signal in BSX because of momentum, measured by 14-day RSI. Our momentum gauge broke out of a downtrend this week, and that puts a higher probability on price following suit.

Still, it's crucial to wait for price to make its move before jumping into a trade in BSX. Avoid being a buyer until shares can close above our $13.70 trendline. After that, the 50-day moving average is a good place for a protective stop.

If you liked this article you might like

A Few Trade Ideas Ahead of Dow 20,000

Bullish and Bearish Reversals for the Week

Analysts' Actions -- Quintiles, Royal Caribbean, Western Digital and More

'Mad Money' Lightning Round: Don't Sell Scripps

Jim Cramer's 'Mad Money' Recap: Tune Out the Fed, Focus on What Matters