BMY pushes through Wednesday's high
Bristol-Myers Squibb Company (BMY) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BMY finished Thursday at 52.25 gaining $2.90 (5.88%), slightly underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 51.95, the stock confirmed its breakout through the previous session high after trading up to $1.37 above it intraday.
Daily Candlestick Chart (BMY as at Mar 26, 2020):
Thursday's trading range has been $3.01 (5.97%), that's slightly below the last trading month's daily average range of $3.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 White Candle.
Buyers managed to take out the key technical resistance level at 50.62 (now S1), which is likely to act as support going forward. The last time this happened on January 28th, BMY actually lost -1.03% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 54.10 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bristol-Myers Squibb. Out of 283 times, BMY closed higher 57.60% 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 60.07% with an average market move of 0.41%.