Bristol-Myers Squibb (BMY) has climbed to a new recovery and new 2 3/4-year high at 27.26 (so far) today, which has triggered new projections into the 28.00-29.00 target zone in the upcoming weeks and months.

The BMY situation just could be a perfect storm: strong fundamentals coupled with bullish technicals. Indeed, just yesterday Barron's Weekday trader posted a very supportive article concluding that even though BMY is trading at a relatively high multiple (for Big Pharma) of 12 X forward earnings, the premium is "well deserved," largely because BMY has one of the industry's strongest pipelines and lots of cash.

From my perspective, it is always better to have bullish fundamentals supporting the chart pattern, which appears to be the case with BMY. From a near-term technical perspective, as long as the recent two-week support area, in general -- and today's pivot low at 26.89, in particular -- remain intact, I will consider BMY to be extremely bullish.

 

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