by Shane Ormond
On Jan 21, 2020
Now that the Chinese factory is complete (and just in time for a deadly virus outbreak), self-proclaimed “Buff Mage” Elon Musk is turning his attention to Germany, where colonies of bats and unexploded World War II bombs threaten to undermine investor confidence. (Those are not metaphors.)
Yesterday, we looked at a Keltner Channel chart of ProShares UltraPro S&P500 and noted that it was on a pullback from being overbought.
Today’s chart is for Bristol Myers Squibb Co. (NYSE: BMY).
Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. The company offers drugs in oncology, immunoscience, cardiovascular, and fibrotic diseases.
Now, the Daily Price Chart below shows that BMY has been making a series of 52-Week Highs since mid-October.
Stocks just don’t hit new 52-Week Highs unless the uptrend has legs to stand on.
But they never advance in a straight line. That’s why there are always price retracements along the way.
BMY experienced periodic price pullbacks during its strong advance since mid-October.
Traders can get a lower risk entry point after a 3 to 5% price retracement as the stock normally resumes its price up trend after such retracements.
We’ll be sure to continue following Bristol Myers Squibb Co. as it climbs to new heights, and watching for price retracements.
And if you’re a member of our PowerTrend Options service, then you’d already be up 28% on the BMY option we recommended two weeks ago.
That’s the power of options, after all.
Editor, Chart Of The Day