BIIB slips to lowest close since October 21, 2019
Biogen Inc. (BIIB) Technical Analysis Report for Oct 27, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, BIIB finished Tuesday at 255.30 losing $1.46 (-0.57%), significantly underperforming the Nasdaq 100 (0.82%). Today's close at 255.30 marks the lowest recorded closing price since October 21, 2019. Trading $2.37 higher after the open, Biogen was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 16th, BIIB lost -4.01% on the following trading day. Closing below Monday's low at 255.83, the share confirmed its breakout through the previous session low after trading up to $0.88 below it intraday.
Daily Candlestick Chart (BIIB as at Oct 27, 2020):
Tuesday's trading range has been $3.75 (1.46%), that's far below the last trading month's daily average range of $6.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIIB.
One bullish candlestick pattern matches today's price action, the Inverted Hammer.
Prices are trading close to the key technical resistance level at 260.30 (R1). After having been unable to move lower than 255.83 in the prior session, the stock found buyers again around the same price level today at 254.95.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 277.63.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Biogen. Out of 22 times, BIIB closed higher 68.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 81.82% with an average market move of 6.72%.