Bristol-Myers Squibb Company (BMY) continues to act extremely well technically. Below is what I wrote three weeks ago, with BMY at 24.61. The big picture analysis remains unchanged, and this week's positive action -- especially today's surge from 24.45 to 25.30 -- argues strongly that the price structure has started the thrust off of the neckline retest (Jan low at 23.49). If such a scenario proves accurate, then BMY should be heading for 26.00-26.60 directly from here.

From our Feb 17 analysis: The huge accumulation (base) pattern that has been carved-out by BMY from early 2008 through the end of 2009, broke out to the upside in Nov. '09 at the 24.00 resistance level, which triggered upside follow- through to an initial high of 26.62. The 3 week correction from 26.62 to 23.49 now is compete, which returned the price structure to its "neckline" breakout plateau, from where it has pivoted to the upside-- into what my work argues should be the initiation of a new upleg that revisits 26.62 on the way to 27.50, then 29.00-30.00. Only a plunge that breaks the Jan. low at 23.49 invalidates the intermediate term bullish set-up.

Mike Paulenoff is the co-author of The Business-One Irwin Guide to the Futures Markets (with Stanley Kroll). He was formerly the chief on-air market consultant and strategist for JAGfn, a live, daily 8-hour financial market webcast and cable TV show, and was President of MJ Capital Inc., a market analysis and trading firm which advised clients involved in the financial futures and commodity markets. Mike's real-time ETF trading diary and chart analysis can be found at MPTrader.com (click for a free trial).