BMY closes lower for the 3rd day in a row
Bristol-Myers Squibb Company (BMY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BMY ended the month -0.24% lower at 58.66 after losing $0.21 (-0.36%) today, notably underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BMY as at Jul 31, 2020):
Friday's trading range has been $1.32 (2.24%), that's slightly above the last trading month's daily average range of $1.23. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BMY.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Takuri Line which are both known as bullish patterns.
After having been unable to move above 59.15 in the previous session, Bristol-Myers Squibb ran into sellers again around the same price level today, missing to move higher than 59.09. The last time this happened on July 23rd, BMY lost -3.37% on the following trading day.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the close-by swing high at 59.82 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 57.35 where further sell stops might get activated. As prices are trading close to July's high at 60.68, upside momentum could accelerate should the market mark new highs for the month. As prices are trading close to July's low at 57.16, downside momentum might speed up should the share mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Bristol-Myers Squibb. Out of 792 times, BMY closed higher 54.17% 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 57.70% with an average market move of 0.43%.