MIKE PAULENOFF'S ETF TRADING DIARY
Bristol-Myers Squibb Company (BMY) continues to act extremely well technically. Below is what I wrote three weeks ago, with BMY at 24.61. The big picture analysis remains unchanged, and this week's positive action -- especially today's surge from 24.45 to 25.30 -- argues strongly that the price structure has started the thrust off of the neckline retest (Jan low at 23.49). If such a scenario proves accurate, then BMY should be heading for 26.00-26.60 directly from here.
From our Feb 17 analysis: The huge accumulation (base) pattern that has been carved-out by BMY from early 2008 through the end of 2009, broke out to the upside in Nov. '09 at the 24.00 resistance level, which triggered upside follow- through to an initial high of 26.62. The 3 week correction from 26.62 to 23.49 now is compete, which returned the price structure to its "neckline" breakout plateau, from where it has pivoted to the upside-- into what my work argues should be the initiation of a new upleg that revisits 26.62 on the way to 27.50, then 29.00-30.00. Only a plunge that breaks the Jan. low at 23.49 invalidates the intermediate term bullish set-up.
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