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Swing Trade Idea (BMY) – March 11, 2022

Our bearish trade for Friday, March 11th is Bristol-Myers Squibb Company (BMY). BMY is part of the Health Care sector that has performed at -2.43% for the last month, with BMY’s performance for the last week at -1%.

BMY recently broke below the near all-time-high price of $69, support turned resistance, level and rejected this level on the retest which provides a good risk/reward bearish entry. Both 1M and 6M trends are bullish, however, this is a contrarian trade as we expect BMY to retrace from its current over-extended level. 

As a close, if BMY were to trade above $69 for multiple days, this would invalidate our analysis and focus cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves below $0.87.