Bristol-Myers Squibb Plunges 5.81% To Six-Day Low As Bearish Momentum Intensifies

Bristol-Myers Squibb (BMY) closed at $43.31 on July 31, 2025, down 5.81% for its sixth consecutive decline, resulting in an 11.58% cumulative loss over this period. This analysis synthesizes multiple technical indicators to evaluate current conditions and potential price trajectory.
Candlestick Theory
The six-day bearish sequence exhibits consistently lower highs and lows, culminating in a wide-range down candle on July 31 (high: $45.51, low: $42.96). This price action establishes $42.96 as immediate support and aligns with psychological support at $43.00. Resistance is evident near $45.50–$45.51 (July 31 high) and the multi-session congestion zone between $47.26–$48.98 (July 23–30 highs). The absence of reversal patterns like hammers or engulfing candles suggests ongoing bearish control.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages display a bearish alignment (200DMA > 100DMA > 50DMA), with the 200DMA positioned near $50.50–$51.00 and the 50DMA near $46.50–$47.00. The current price trades below all three averages, confirming a sustained downtrend. Recent interactions show the 50DMA crossing below the 100DMA in late June 2025, triggering accelerated selling pressure. This configuration signals entrenched bearish momentum, with any rally likely to face resistance near the descending 50DMA.
MACD & KDJ Indicators
The MACD histogram remains in negative territory below its signal line, reflecting bearish momentum acceleration during the six-day decline. The KDJ oscillator shows the %K line at 20.3 and %D at 25.7, approaching oversold thresholds but without bullish crossover confirmation. Both indicators align in signaling continued downward pressure, though deeply oversold KDJ levels could foreshadow near-term consolidation if momentum stabilizes. No divergence between price and momentum oscillators is currently evident.
Bollinger Bands
Price breached the lower Bollinger Band ($45.00–$45.50) on July 31, coinciding with a band expansion that reflects rising volatility. Historical band violations in May 2025 preceded short-term bounces, suggesting the current breach may induce technical consolidation. However, a sustained close below the lower band typically denotes strong directional momentum. Support at $42.96 now aligns with the 2.5 standard deviation lower band extreme, potentially offering tactical support.
Volume-Price Relationship
Volume surged to 44.4 million shares on July 31, exceeding the 20-day average by 62% and confirming capitulation. The past six sessions averaged 14.3 million shares versus the preceding 20-day average of 12.1 million, demonstrating expanding volume on down days—a hallmark of distribution. The volume spike at new lows suggests panic selling, which may exhaust near-term sellers but requires subsequent volume confirmation for any reversal.
Relative Strength Index (RSI)
The 14-day RSI reads 28.6, breaching the oversold threshold (<30). This follows a steady decline from neutral levels (45–55) in mid-July. While the RSI indicates potential exhaustion, its value remains above the February 2025 low of 25.8, indicating room for further downside in persistent trends. Historical RSI recoveries from oversold territory have required consolidation above $45 to sustain rebounds. The current oversold warning lacks divergence signals that might strengthen reversal prospects.
Fibonacci Retracement
Using the swing high of $60.24 (April 2, 2025) and the recent low of $42.96 (July 31, 2025), key retracement levels are identified at $47.04 (23.6%), $49.56 (38.2%), and $51.60 (50%). These levels align with prior resistance zones—notably the $47.00–$48.00 area where rallies stalled in early-to-mid July 2025. The 23.6% level ($47.04) now represents the minimum threshold for trend reversal consideration, while $49.56 coincides with the 100DMA, creating a strong confluence resistance zone.
Confluence & Divergence Observations
Confluence appears at the $42.90–$43.00 support region, reinforced by Bollinger Band extremes, psychological support, and July 31’s price low. Similarly, the $47.00–$49.50 resistance zone combines Fibonacci, moving average, and prior price congestion barriers. No material divergences exist among indicators—momentum, trend, and volume metrics align in confirming bearish dominance. The oversold RSI and Bollinger Band breach offer the sole counterpoints, suggesting technical exhaustion that may temporarily slow the descent.
In summary, Bristol-Myers Squibb exhibits pronounced bearish momentum confirmed across trend, volume, and oscillators. The $42.96–$43.00 zone offers tactical support, but recovery prospects require consolidation above $45.50 and subsequent volume-backed breaches of Fibonacci levels near $47.00. Without reversal signals or bullish divergences, the path of least resistance remains downward, with any near-term bounce likely capped by resistance at $47.04.