BMY plummets, losing $2.71 (-4.05%) within a single day on high volume


Bristol-Myers Squibb Company (BMY) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team

Highlights

BMY crashes, losing $2.71 (-4.05%) within a single day on high volume
BMY breaks below 20-day moving average for the first time since January 6th
BMY dominated by bears dragging the market lower throughout the day
BMY closes lower for the 2nd day in a row
BMY breaks below Thursday's low

Overview

Moving lower for the 2nd day in a row, BMY finished the week -3.84% lower at 64.16 after tanking $2.71 (-4.05%) today on high volume, significantly underperforming the S&P 500 (-0.9%). This is the biggest single-day loss in over seven months. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 66.03, the share confirmed its breakout through the prior session low after trading up to $2.43 below it intraday.

Daily Candlestick Chart (BMY as at Jan 24, 2020):

Daily technical analysis candlestick chart for Bristol-Myers Squibb Company (BMY) as at Jan 24, 2020

Friday's trading range has been $3.14 (4.73%), that's far above the last trading month's daily average range of $1.03. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BMY.

One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 2nd, BMY lost -0.88% on the following trading day.

Bristol-Myers Squibb closed below the 20-day moving average at 65.11 for the first time since January 6th.

While the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

With prices trading close to this year's low at 62.55, downside momentum could accelerate should the stock break out to new lows for the year.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Bristol-Myers Squibb. Out of 253 times, BMY closed higher 56.52% 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 57.31% with an average market move of 0.73%.


Market Conditions for BMY as at Jan 24, 2020

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