Pharmaceutical giant Bristol-Myers Squibb (BMY) has been struggling for weeks and recently broke a key support zone. Let's check on the condition of the charts and indicators to see what the side effects are.
In this daily bar chart of BMY, below, I can see that prices made a high in early December and turned lower. Prices held the prior low around $66 in late August and again in March but that support zone gave way last week and prices sank lower.
BMY trades below the declining 50-day moving average line and below the declining 200-day line. The On-Balance-Volume (OBV) line has been weak since late June. The Moving Average Convergence Divergence (MACD) oscillator moved below the zero line in early May for an outright sell signal.
In this weekly Japanese candlestick chart of BMY, below, I can see a bearish picture. Prices are in a downward path and trade below the negatively sloped 40-week moving average line. The weekly candles do not show me a bottom reversal and do not show any lower shadows. The weekly OBV line is weakening slowly. The MACD oscillator turned bearish in February.
In this daily Point and Figure chart of BMY, below, I can see a downside price target in the $60 area.
In this weekly Point and Figure chart of BMY, below, I can see that the software is projecting a downside price target in the $55 area.
Bottom line strategy: BMY could announce the next blockbuster drug at any time but right now the charts suggest we could have further weakness before that happens.
