Bristol-Myers Squibb (BMY - Get Rating) is trading sideways, within a range, and a rectangle pattern has formed that could lead to a breakout or breakdown sometime soon.
BMY discovers, develops, and markets drugs for various indications, such as cardiovascular, oncology, and immune disorders. The company’s immuno-oncology drug, Opdivo, and its blood thinner, Eliquis, drive growth for the company’s profits. The label expansion of Opdivo should continue to boost revenue.
Take a look at the 1-year chart of Bristol BMY below with added notations:
Chart of BMY provided by TradingView
After a very volatile spring, BMY has moved into a trading range and has formed a key resistance around $61 (red), and an important area of support around $57 (green). At some point, the stock will have to break either above the $61 or below the $57 mark.
A trade could look to buy BMY when it exceeds $61, with the assumption of a breakout. Or short BMY if it falls below $57, with the assumption of a breakdown.
Keep an eye out on August 6th for BMY’s latest earnings report.
Have a great trading day!
Good luck!
Christian Tharp, CMT
@cmtstockcoach
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BMY shares were trading at $58.82 per share on Wednesday morning, down $0.61 (-1.03%). Year-to-date, BMY has declined -6.25%, versus a 1.47% rise in the benchmark S&P 500 index during the same period.
About the Author: christian
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...
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