BMY closes below its opening price unable to hold early session gains
Bristol-Myers Squibb Company (BMY) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BMY ended Wednesday at 59.45 losing $0.08 (-0.13%) on low volume, but still slightly outperforming the S&P 500 (-0.46%). Trading $0.30 higher after the open, Bristol-Myers Squibb was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BMY as at Sep 16, 2020):
Wednesday's trading range has been $0.73 (1.22%), that's below the last trading month's daily average range of $1.06. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BMY. Prices continued to consolidate within a tight trading range between 59.07 and 60.11 where it has been caught now for the last three trading days.
After trading down to 59.24 earlier during the day, the market bounced off the key technical support level at 59.38 (S1). The failure to close below the support might increase that levels significance as support going forward. The share ran into sellers again today around 59.97 for the third trading day in a row after having found sellers at 60.11 in the prior session and at 60.09 two days ago. The last time this happened on July 8th, BMY lost -2.43% 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 60.11 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Bristol-Myers Squibb. Out of 431 times, BMY closed higher 57.77% 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 59.63% with an average market move of 0.31%.