Bristol Myers Squibb (BMY US)

Bristol Myers Squibb is a global research and development biopharmaceutical company that develops, licenses, manufactures, markets, and sells pharmaceutical and nutritional products. The company focuses on products and therapies that address cancer, heart disease, HIV, diabetes, rheumatoid arthritis, hepatitis, organ transplant rejection, and psychiatric disorders.

- By Peet Serfontein, Khumbulani Kunene

Technically, the appearance of a buy signal according to the Bollinger Bands presents a promising investment opportunity (see the insert on the main chart). The price has swung within the upper and lower Bollinger Bands and the most recent buy signal emerged after a period of consolidation near the lower Bollinger Band, pointing to reduced downward pressure as buyers appear to reenter the market.

The price appears to be in the Accumulation phase of the Wyckoff Price Cycle. In this phase, volatility typically narrows amid subsiding selling pressure, and the price tends to form a base as weak holders exit the market and stronger participants begin to take control.

The start of upside price momentum per the Moving Average Convergence Divergence (MACD) histogram, as well as the sideways trajectory of the on-balance volume (OBV) indicator, supports our bullish view.

Technical analysis