BMY breaks below Wednesday's low
Bristol-Myers Squibb Company (BMY) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BMY finished Thursday at 44.53 tanking $1.43 (-3.11%) on high volume, significantly underperforming the S&P 500 (0.23%). This is the biggest single-day loss in over two weeks. Today's close at 44.53 marks the lowest recorded closing price since September 13, 2013. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 45.75, Bristol-Myers Squibb confirmed its breakout through the previous session low after trading up to $1.58 below it intraday.
Daily Candlestick Chart (BMY as at Jul 11, 2019):
Thursday's trading range has been $1.72 (3.75%), that's far above the last trading month's daily average range of $0.88. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BMY.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Bullish Hikkake Pattern showed up on June 28th, BMY gained 1.83% on the following trading day.
Prices broke below the key technical support level at 44.54 (now R1), which is likely to act as resistance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bristol-Myers Squibb. Out of 23 times, BMY closed higher 60.87% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.87% with an average market move of 1.68%.