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by Koos van der Merwe
With a correction due as per my charts in the next few months, buying at the bottom when everyone else is selling is a good strategy. Here is a company we should watch.
Position: Accumulate
Koos van der Merwe
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
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ELLIOTT WAVE
Bristol Myers Squibb
04/28/10 01:07:25 PMby Koos van der Merwe
With a correction due as per my charts in the next few months, buying at the bottom when everyone else is selling is a good strategy. Here is a company we should watch.
Position: Accumulate
| Bristol Myers Squibb (BMY) is a New York-based biopharmaceutical company. With the United States adopting a medical aid law, the price of drugs may fall, but the quantity prescribed will rise. Although most pharmaceutical companies lobbied against the bill, ever since it passed, the share price of BMY has been rising. |
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| FIGURE 1: BMY, MONTHLY |
| Graphic provided by: AdvancedGET. |
| |
| Figure 1 shows how the price moved from a low of $12.57 in March 1994 to a high of $79.18 by October 1999. The share price started correcting before the market meltdown of 2000, with the share price moving against the trend of 2000 and then succumbing to a low of 16.47 by October 2008. |
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| FIGURE 2: BMY MONTHLY VS. DJIA. Here's how BMY performed relative to the DJIA. |
| Graphic provided by: MetaStock. |
| |
| The pattern shown by the Dow Jones Industrial Average (DJIA) is not there, as shown in Figure 2 where the pattern of the DJIA is superimposed on the monthly chart of Bristol Myers Squibb Co. However, note that the share price did start trending with the DJIA over the last few months. |
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| FIGURE 3: BMY, DAILY |
| Graphic provided by: OmniTrader. |
| |
| Figure 3 shows the moving average convergence/divergence (MACD), with volume suggesting a buy at present levels. The price is also testing a Fibonacci level at $24.39. Volume is also falling, a sign of strength. This is a share I would watch and add to my portfolio as the market corrects. |
Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.
| Address: | 3256 West 24th Ave |
| Vancouver, BC | |
| Phone # for sales: | 6042634214 |
| E-mail address: | petroosp@gmail.com |
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