Believe it or not, technical charts are the key to making money in this volatile trading environment. While many leading industry groups are now in correction territory, it is critical for traders and investors to know where the major support levels are for individual stocks.
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One stock that has declined sharply is Bristol-Myers Squibb (NYSE:BMY). This leading pharmaceutical stock plunged on Monday after reporting earnings. BMY is trading lower by another $2.18 to $58.77 a share. It is important to note that the stock is now trading below its important 200-day moving average, which puts the stock in a weak technical position with more downside to come. In this trading climate it is critical to identify major support levels that will find support from the institutional money. The best and safest level that I see for BMY is around $51.50. That's where BMY was defended in February 2017. Should BMY test this level again it will most likely be an excellent area for a long (buy) side trade.
