Thursday, November 15, 2012

Bristol-Myers Squibb (BMY) sells off to channel support

NOV15 2025PST. Shares of Bristol-Myers Squibb (BMY) have today declined to an appealing buy-point: the support of a precisely-fitting, 3-year price channel. The channel, drawn on the chart below with a dashed red line, is defined by four price extremes, which are highlighted in solid yellow.

BMY. November 2008 to present. Daily candles.
The lower portion of the screenshot shows an oscillator that is defined as the difference between price and its 100-day simple moving average. (The latter is drawn on the chart as a dashed blue line.) As such, the oscillator can be interpreted as an indicator of market sentiment. The current value of the oscillator, -2.45 (i.e. price is $2.45 below the 100-day SMA), is the lowest value since March 2009, suggesting that the stock is oversold.