Scott asks: is $BMY the biggest Cup & Handle of all time? – May 17, 2022
BMY SPY
This is Scott with your Chart of the Day. I have a question for you, do you think Bristol-Myers Squibb ( NYSE: BMY ) has the biggest cup and handle of all time? Because if I zoom out here you can see, it has got a nice big cup, right there. It starts all the way back in 2016, and we are consolidating and trying to break out of this base here. And it coincides with, zooming all the way back to the highs back here in 2016.
But that is not all, that is just a daily chart. If I flip over to the weekly chart and zoom even further back you can see this even bigger cup and then potentially an even bigger handle. Again, look at how important this zone is for this stock. This stock has a price history in this area, all the way back to the late 1990s and into the 2000s.
I think this is a pretty important price area for BMY ( NYSE: BMY ) and I think it warrants keeping an eye on. Now, full disclosure, I do have a position in the stock that I bought yesterday and added to today. And again, just because of a nice sideways consultative base and a break out of that base coming on okay volume. The volume the last couple of days is pretty positive.
But here is what has me even more excited about this stock, the fact that this stock hit an all-time high today. The overall market, the SPY ( NYSEARCA: SPY ), is still down near the lows. It did have a nice update today but it is still within a few percentage points of the lows. You can say it is closer to the lows than it is to the top.
I am interested in BMY ( NYSE: BMY ) because it is closer to the highs than it is to the lows. And in a crumby market, we want to pay attention to that relative strength. We want to pay attention to stocks that are near the highs when the market is near the lows because then, ideally, when the market turns around these stocks that are near the highs are making even bigger moves.
That is what I am looking for here on BMY ( NYSE: BMY ). I want to see a continuation of this move and more all-time highs to come. Now, just have a little short interest, there are about 35 million shares still short this stock and it is at the all-time high so there is potentially a little built-in buying that could come into this stock and juice it up even more.
So that is what I will be watching for here on Bristol-Myers Squibb ( NYSE: BMY ). I do think it is a tad extended from the 8-day exponential period moving average for a new buy but you could potentially watch for a little pullback or a retest of this breakout close to the 8 and 21-day exponential period moving averages.
Free Chart