BMY closes within previous day's range after lackluster session
Bristol-Myers Squibb Company (BMY) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BMY finished the week 0.2% higher at 66.38 after gaining $0.30 (0.45%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BMY as at Feb 14, 2020):
Friday's trading range has been $0.85 (1.28%), that's below the last trading month's daily average range of $1.17. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BMY.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 6th, BMY actually lost -1.27% on the following trading day.
Prices are trading close to the key technical resistance level at 66.99 (R1). After having been unable to move lower than 66.04 in the previous session, the stock found buyers again around the same price level today at 65.98.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 67.55 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 65.80 where further sell stops could get activated. With prices trading close to this year's high at 68.34, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Bristol-Myers Squibb. Out of 782 times, BMY closed higher 52.81% 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 57.54% with an average market move of 0.54%.