Chart of the Week: Bristol-Myers Squibb
Hey good morning everybody. It’s time for our chart of the week, and this week we’re gonna be focused in on big pharma name, Bristol-Myers; BMY is the symbol. There’s not a whole heck of a lot to like in this market right now if you’re bullish, but this is one of those charts that looks real strong and has broken out recently on pretty heavy volume. So let’s look at the chart for right now.
So what’s nice here is this stock has built in a couple of nice series of higher highs and higher lows on different timeframes. You can see this nice connecting higher lows and higher highs.
And the most recent low in February, down to the $50s area, bounced nicely off of that, which is the lower Bollinger band. And this trend line has literally gone vertical over the past 2 1/2 weeks, from about $54 up to $63. So for Bristol-Myers, that’s about an 18% gain. Pretty strong move for that stock.
But more impressively is how the stock has eclipsed recent highs. In January, the high got stuck up to about $61 and pulled back a bit. A natural pullback over here. We would have liked for it to have held around the $58 – 56 level. That didn’t happen. But still very impressive. The stock was down on a big day here in February and bounced back right up again.
Relative strength is solid. It’s up at an overbought reading. We see Chaikin money flow is also in the positive here. MACD is on a buy signal.
But that a look at this bottom chart. This is what really has my eye.
On-balance volume – completely bullish right now. It’s been attracting large institutional money for the past 3 1/2 months, since the end of December. So I think that Bristol-Myers here, one of those names that people are hiding out in. Probably because they got a nice high yield; it’s a solid grower too.
Look at the volume bars of the past 5 1/2 weeks, since the end of January/beginning of February. The stock has been strong on good volume and that means that the stock is probably gonna be moving much higher.
So we think that the stock is probably going to run to $70 – 72 over the next few months.
Keep an eye on Bristol-Myers. If you own the stock, be patient and wait for it to move. And hopefully we’ll get to those targets later on this year. Thanks so much for watching everyone and I’ll see you guys next time.
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