BRM trade ideas
Bristol-Myers Squibb Set To Rise, ButLooks like a little more downside is possible through remainder of month, but BMY is primed for a very strong October if the algorithms are correct and history continues to be accurate.
Based on historical movement, the trough could occur anywhere in the larger red box. The final targets are in the green boxes. The pending top should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated BUY on September 15, 2021 with a closing price of 62.0.
If this instance is successful, that means the stock should rise to at least 62.9 which is the bottom of the larger green box. Three-quarters of all successful signals have the stock rise 3.9935% from the signal closing price. This percentage is the bottom of the smaller green box. Half of all successful signals have the stock rise 6.5875% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock rise 10.224499999999999% from the signal closing price which is the top of the smaller green box. The maximum rise on record would see a move to the top of the larger green box. These are the same concepts for the levels in the red boxes as well.
The ends/vertical sides of the boxes are determined in a similar fashion. The peak of the rise can occur as soon as the next trading bar after signal close, while the max rise occurs within the limit of study at 35 trading bars after the signal. A 1% rise must occur over the next 35 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 6.5 trading bars; half occur within 19.0 trading bars, and one-quarter require at least 31.0 trading bars.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
BMY Long Trade Idea
Enter Long
- Ideal price is $64-$66
Stop Loss
- $64.4
Profit Target
- $70-$71
ARK fund is dumping Bristol-Myers Squibb (BMY), should you?
Yet another solid company with solid financials who is currently trading at 65.6% below estimated fair values. Earnings are forecasted to grow 30.88% per year. This stock also pays out a reliable dividend of 2.96%. Caution as there has been significant insider selling over the past 3 months. I plan on buying this at open tomorrow and holding for a few weeks or until price target is reached.
For the six months ended 30 June 2021, Bristol-Myers Squibb Co revenues increased 9% to $22.78B. Net income totaled $3.08B vs. loss of $860M. Revenues reflect Prioritized Brands-Eliquis segment increase of 18% to$5.68B, Prioritized Brands-Revlimid segment increase of 6%to $6.15B, United States segment increase of 9% to $14.4B,Europe segment increase of 11% to $5.24B.
BMY sets sights on the 70s levelHealthcare and Bio stocks have been slowly creeping up the past few weeks. BMY has been eyeing the 70 level and I believe we will see it touch within the next few weeks. They recently had a cancer drug FDA approved: finance.yahoo.com
Technicals:
- RSI level over 50 on the daily
- Positive MACD on the daily and is curling upwards
- OBV is rising with price
- Brief drop to the 9EMA on the major red day 8/19, only to bounce back up hard and with volume
- Closed 8/20 at 69.20, over the previous impulsive move to 68.99
- Weekly Chart (not pictured) is a bullish engulfing breakout candle
Option Volume is incredibly bullish leaning
gyazo.com
Bristol Myers Is Bucking Long-Term ResistanceBoring old pharma names like Pfizer and Johnson & Johnson have plodded higher lately. Bristol Myers Squibb may be following a similar course.
The first chart pattern on BMY is the steady uptrend along its 50-day simple moving average (SMA). Also notice how price fell into oversold territory on stochastics last week.
Next, consider the current price zone around $68-70. It's near the highs in January 2020 and February 2018, shortly below the coronavirus crash. Looking further back to August 5, 2016, we find a large bearish price gap with a top around $75. That may create the potential for a run toward the mid-70s if the current resistance gives way.
Finally, BMY trades for less than 10x forward earnings. That could be a positive in the current environment because value indexes are outperforming growth this month.
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BMY - One to watch - Wedge? BMY looks like it could take a tumble.
Im not sure if I will take the trade myself.
But we have the following confluences;
Rising Wedge Pattern
Momentum divergence (Momentum = Lower Highs but Price = Higher Highs)
RSI divergence (RSI = Lower Highs but Price = Higher Highs)
Volume looks to be on the decline (giving confirmation to the wedge)
BMY Flirting With Historic TerritoryWhen I say "historic" for BMY I'm not talking ATH but the stock's encroaching on an area that has been tested 3 times being rejected each time. This is the 236 fib area using 2016's high as the top anchor. It's been 5 years since BMY traded well above this area. But with the way attention is being placed on immunotherapy stocks, it could be something to keep in mind for BMY longs.
" Both Bristol-Myers and Novartis recently gave updates on new FDA updates. Novartis’ NIS793 gained FDA Orphan Drug Designation, while Bristol-Myers’ recent earnings update revealed strong sales figures from its lead cancer drug, Opdivo...B7H3 protein is a checkpoint molecule, which has very recently become a target for cancer treatment. While things are still in the very early stages for B7 molecules, as a whole, early research is also finding new potential for targeted cancer treatments. For instance, Merck’s (NYSE: MRK ) blockbuster drug, Keytruda, and Bristol-Myers’ YERVOY treatments target the same checkpoint inhibitors that are part of the B7 family (PD-1/PD-L1 and CTLA-4/CD80). They’ve also both demonstrated a clear survival benefit when it comes to immune-oncology treatment ."
Quote Source & Read More: Hot Biotech Stocks To Watch After Sanofi’s Acquisition Of Translate Bio
BMYThe beige line is the level, made by eye.
The black line is the level, accurate.
Above the first black line (when pinning, you can consider a long one) with the corresponding goals.
It is also possible to fall down if this movement is from 2016 to 2019 wave A, and the current triangle is wave B and we are going to wave C. Remember this!
