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Bristol Myers Squibb (BMY) Pulling Back After the August Breakout

Bristol Myers Squibb $BMY is retreating sharply, but we should respect a previous bullish breakout and therefore anticipate support for the current pullback.

BMY daily Chart

(click to enlarge)

Bullish Breakout:
- Note that BMY has been trading sideways since late 2016. 
- In August 2017, price started to heat up and broke above this consolidation structure, opening up a bullish outlook.
- Price found resistance at 66 and has retreated back to 60.
- I think we saw some support at 60 as a psychological level and a previous resistance in January. 
- But let's say price continues lower.
- If it slows down the decline and approaches the 56.80-58.55 area, I would anticipate support.
- This area involves the 200- and 100-day simple moving averages, a couple of previous resistance pivots, and a rising trendline.
- Meanwhile, we should look for bullish divergence between price and the RSI as price enters this support area. 
- Looking at the weekly chart, we can also see a key support/resistance pivot at 57.50, which is in the middle of our proposed area of support.
- Unless price breaks below 56, I think BMY looks like a good boy-on-a-dip situation. But if price dips below 56, 55, we might be seeing another bearish correction wave at least to test the 2017 lows around 46.

BMY Weekly Chart

(click to enlarge)