Bristol-Myers Squibb (BMY) is breaking out higher on strong momentum as its blockbuster drugs are experiencing global commercial success. After months of consolidation, BMY's share price is breaking out higher on strong momentum. Additionally, BMY's blockbuster drugs are continuing to experience strong global growth, while capturing market share. This is leading management to forecast continued success in 2018. I am buying longer-dated options in the name to leverage returns while limiting downside risks.
Price Action
BMY's price action is one of the most attractive charts among large U.S. companies currently. On both its hourly and monthly charts, shown below, the stock looks to be consolidating before a breakout higher.
On its hourly chart, the stock broke above $66 last week, a significant level of resistance over the last few months. There was also follow through higher in the days after the breakout, signaling increasing momentum.
