BMY Signals BUY On Daily Chart

The Technical Analysis

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Published: September 15, 2021 at 09:55 PM EDT

On September 15, 2021, Bristol-Myers Squibb Company stock (BMY) achieved a BUY signal on 2 of our proprietary algorithms indicating near-term upward movement for BMY. Based on historically similar occurrences, the likelihood of this near-term movement is very high. Although this analysis may be technical, it clearly lays out targets for pending price action for BMY. The chart of all potential movement is at the bottom of this article.

Multi-Time Frame Algorithm

This algorithm determines when price direction reverses at the same time on the Daily and 3 Hour chart. There are two buy and sell points for this algorithm. An aggressive signal occurs when price direction changes on both charts at the same time. A conservative signal occurs after the second bar confirms price direction has changed. Aggressive signals can happen without conservative signals. Conservative signals only occur when an aggressive signal also occurs at the same time. The signals appear on other time frame charts in the same position a cross-over occurs on the 3 Hour and Daily charts.

Multi-Time Frame Aggressive BUY - BMY Daily Chart Accuracy

This algorithm accurately identifies BUY points for BMY on daily charts 89.474% of the time it signals. A successful signal means the equity price moves up at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 20 trading bars after the signal bar. Successful signals see average reversals of 6.58% from the signal bar closing price and median reversals of 5.632%. The equity reverses greater than two percent 81.579% of the time, greater than five percent 47.368% of the time, and moves beyond ten percent 18.421% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 82.895% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 2 to 9 bars after the triggering signal occurs. This delay can see the equity decline 1.087% to 4.456% beyond the signal closing price of 62.0.

Analysis Based on This Section

Based on the signal closing price of 62.0, the target price is between 64.3 and 67.09 over the next 9 to 31 bars after the signal. However, the equity may first decline toward a price in the range of 59.24 to 61.33 over the first 2 to 9 trading bars.

Relative Strength Index 3x Extrema

This algorithm follows the common Relative Strength Index with a shorter length. It signals when extreme overbought and oversold conditions occur. This particular algorithm signals rarely but maintains one of the best accuracy levels of all my algorithms.

Relative Strength Index 3x Extrema BUY - BMY Daily Chart Accuracy

This algorithm accurately identifies BUY points for BMY on daily charts 100.0% of the time it signals. A successful signal means the equity price moves up at least 1% over the next 35 Daily bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 18 trading bars after the signal bar. Successful signals see average reversals of 9.036% from the signal bar closing price and median reversals of 7.543%. The equity reverses greater than two percent 94.595% of the time, greater than five percent 70.27% of the time, and moves beyond ten percent 37.838% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 81.081% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 1 to 8 bars after the triggering signal occurs. This delay can see the equity decline 1.36% to 4.323% beyond the signal closing price of 62.0.

Analysis Based on This Section

Based on the signal closing price of 62.0, the target price is between 64.65 and 69.59 over the next 4 to 31 bars after the signal. However, the equity may first decline toward a price in the range of 59.32 to 61.16 over the first 1 to 8 trading bars.

Summarization of Data

Based on all of the historical datapoints, this analysis has settled on the most likely courses of movement. The red boxes in the image below indicate the likely location of a decline if the signal is not immediately accurate. The green boxes likely hold the extent of signal accuracy. The larger boxes contain all movements aligned with historical data. The smaller box is comprised of the likely half of the median historical data. In this instance, half of the historical data shows the stock may first move down between 59.28 and 61.245. This is the small red box. Likewise, half of the historical target end points finish in the smaller green box. In this instance, the target top is likely between 64.475 and 68.34.

Chart displaying Reversals and Targets for BMY

View this interactive chart on TradingView to see where the stock currently is for this idea.

DISCLOSURE: The algorithms and historical accuracy percentages mentioned in these articles are for reference only. Anything can happen in the future when it comes to market movement. Historical price action is not always indicative of future movement. Just because the signals may have a high degree of accuracy, they can always fail. Traders assume all risk to their assets when investing in short or long-term opportunities.

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