I cannot deny that I have a poor track record with my recommendations for Bristol-Myers Squibb (BMY) . Several times I have written for Real Money subscribers that the pharmaceutical giant should break out to new highs. Back on May 21, for example, I wrote that "Traders and investors should continue to hold existing longs and add to longs if they have room in their accounts. Stops could be raised to $63."
BMY rallied into late August for a small gain before careening lower the next three months. Shares of BMY are now back up around the August zenith so another look at the charts is needed.
In the daily bar chart of BMY, below, we can see that the shares have come back strongly from their early December nadir. BMY is trading above the rising 50-day moving average line and above the bullish 200-day line. We can see in the middle of February that the 50-day line crossed above the slower-to-react 200-day line for a bullish golden cross buy signal. Obviously the signal was late to the move higher.
The On-Balance-Volume (OBV) line shows uneven improvement from early December. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
