Increasingly the pattern carved out by Bristol-Myers Squibb (BMY) during the past three weeks has the right look of a bullish digestion period from the Aug 10 high at 26.78 to the Aug 27 low at 25.66. Since the corrective low, BMY has climbed to today's high at 26.55 that represents the start of a new upleg within the larger advance off of the May low at 22.24.

If my analysis proves accurate, then BMY will hurdle and sustain above its Aug highs (26.78/79), which will create the power to climb above the March high at 27.07 -- on the way to 28.20/60.

At this juncture, only a sudden reversal and breach of key near-term support between 25.90 and 25.66 will compromise the current bullish chart pattern and technical set-up.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.