BMY breaks above 20-day moving average for the first time since May 19th
Bristol-Myers Squibb Company (BMY) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BMY ended the month -1.54% lower at 58.80 after gaining $1.00 (1.73%) today, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 58.14, the stock confirmed its breakout through the prior session high after trading up to $1.06 above it intraday.
Daily Candlestick Chart (BMY as at Jun 30, 2020):
Tuesday's trading range has been $1.70 (2.94%), that's slightly above the last trading month's daily average range of $1.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 White Candle. The last time a White Candle showed up on June 22nd, BMY gained 1.42% on the following trading day.
Bristol-Myers Squibb managed to close above the 20-day moving average at 58.27 for the first time since May 19th. After spiking up to 59.20 during the day, the market found resistance at the 200-day moving average at 58.87. After having been unable to move lower than 57.31 in the previous session, the share found buyers again around the same price level today at 57.50.
While BMY is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bristol-Myers Squibb. Out of 288 times, BMY closed higher 58.33% 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 59.03% with an average market move of 0.38%.