BMY – Is the Technical Correction Done ?

 

Bristol-Myers Squibb Company (BMY) NYSE

 

Bristol-Myers Squibb Co. (BMY) had a wild year, up from the lows of $47.54 in mid October 2014 to reach a new 12 years high $69.20 in March, 20th 2015, getting a boost from the fastest FDA approval I ever seen. On Febreuary 27th 2015 the FDA granted Priority Review for Opdivo for Advance Squamous NSCLC with PDUFA goal date in June 22nd 2015, but a week later, March 04th the FDA granted approval for Opdivo, giving the fuel for a new upside to reach a new 12 years high. Lately the price started a technical correction along with Biotechnology Index, breaking down the weekly support line $64.75 to reach again the 50-Day moving average around $63, very close to the Fibonacci 61.8% retracement line, at the same area we have the mid term uptrend line that supposed to be used as a strong support line as well. Meanwhile the indicators getting a reset too where the Stochastics drop to the Over-Sold territory and the RSI is very close too. Despite the strong support area, we can’t predict a reversal pattern yet, as the IBB still unpredictable and under a lot of selling pressure lately, in case of breaking down the lower channel’s line again and the 50-Day moving average, we might get another leg down in the sector that can affect BMY as well.

 Daily Chart

 

Click to enlarge

Click to enlarge

 

What’s Next

As posted today at the Chimera’s private feed, we can start building a position around the 50MA, with the intention of adding more June calls at any dip, or in case of getting a reversal pattern next week and starting a new uptrend. We are getting closer to the AACR-2015 that will start on April 18the to 22nd followed with ASCO-2015 from May 29th to June 02nd as well, both meetings brings a lot of attention and price action, it is a good time to start building a position.

 

Disclosure: Author long BMY June Call options

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  1. BMY 2015 Catalyst Calender https://pbs.twimg.com/media/CCE8E1fW8AAk28n.png:large
    Apr 08, 2015 |
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