Bristol-Myers Squibb (BMY) is on the news Monday as they plan to sell their plaque psoriasis and psoriatic arthritis drug Otezla to obtain FTC approval for their $ 74 billion deal Celgene Corp. (CELG). Let's take a look at the BMY charts.
In this daily bar graph from BMY below, we see that prices fell sharply in October and reached a lower low in early January. A lower closing price was reached in April, but no lower intraday lows.
If we step back a little and look at the chart, we see that dips below $ 46 look like they've found buying interest. Prices have fallen back to $ 46, but it remains to be seen if BMY investors will reappear as buyers below $ 46. BMY is again trading below the rising 50-day moving average. This pharmaceutical company has been under the 200-day mark since mid-October.
The daily on-balance volume (OBV) line has been showing a predominantly declining trend since October, suggesting aggressive sales. The Moving Average Convergence Divergence (MACD) oscillator has spent most of last year below or near zero.
In this weekly bar chart from BMY we can see below that prices are below the falling 40-week moving average line. Today's price movement is not shown, but we can imagine a decline to 46 USD.
The weekly OBV line is weak and the weekly MACD oscillator does not show much in terms of trend strength. Below we can see a large potential base pattern with an upside forecast of $ 57.46.
Conclusion: It looks like BMY is trying hard to reach the bottom. We have a bullish point out of the point and figure chart, but their upcoming acquisition may hold investors back. A trade at $ 50.01 is bullish.
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