Diary of a Financier

Bristol Myers: Ripe in an Overbought Market

In Capital Markets on Tue 28 Dec 2010 at 11:03
  • BMY shows a technically & fundamentally sound setup in an overbought broad market.
  • Waiting for LT MACD bullish cross before initiating long position.

As this market cooks in overbought territory, it’s getting harder to find good long trades.  Bristol-Myers Squibb (BMY) is an outlier out of the Healthcare sector.  Technically and fundamentally, it’s beautiful, so I’m waiting for an entry point.

The short-term setup is ready, the only holdup is the long-term MACD:

BMY weekly chart

A bullish cross will push me to take a position.  A failed cross, however, will take BMY down to first support at $25. Updates to follow…




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