Is it time to give $BMY another look? – August 8, 2022
BMY
This is Scott with your Chart of the Day. I am wondering if it is time to give BMY ( NYSE: BMY ) another try. I had been watching Bristol-Myers Squibb ( NYSE: BMY ) back here in April and May. I was looking for a big break out of this long base of consolidation.
Well, that break never happened, the stock never really gave us a chance to kind of get into it and it never really broke out. But I am wondering if it is time to revisit this stock. Because, as you can see, on Friday here, it had bounced off of a pretty key level of support that it bounced off of earlier in June.
You can see how today, which is Monday, we have this huge bullish engulfing candlestick through a bunch of key moving averages here. Now, the volume today leaves a lot to be desired. But I think that this is a pretty key support zone here for Bristol-Myers Squibb ( NYSE: BMY ).
If I draw a downward sloping trendline from the high back here, at the end of June, you can see we got a little bit of a triangle pattern and we are right underneath a clear level of resistance. And so I think it makes sense to keep an eye on Bristol-Myers Squibb ( NYSE: BMY ) and look for a strong move through that 50-day moving average coming on higher than average volume.
Now, that may be an entry but you could also look for a breakthrough and then wait for the backtest and see if the stock can base, once again, close to the 50-day moving average. So this is a stock that I will be watching, probably for the rest of the month, just to see if it can give us a chance to, eventually, break out of this really long base of consolidation.
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