BIIB unable to break through key resistance level
Biogen Inc. (BIIB) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BIIB finished the week 4.0% higher at 325.20 after edging lower $0.84 (-0.26%) today on low volume, but still notably outperforming the Nasdaq 100 (-1.67%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BIIB as at Nov 09, 2018):
Friday's trading range has been $4.54 (1.39%), that's far below the last trading month's daily average range of $9.86. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIIB. Prices continued to consolidate within a tight trading range between 322.09 and 331.88 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Spinning Top and the Hanging Man.
Unable to break through the key technical resistance level at 326.50 (R1), the market closed below it after spiking up to 326.63 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on October 23rd, BIIB lost -4.46% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 331.88 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Biogen. Out of 308 times, BIIB closed higher 55.84% 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 56.82% with an average market move of 1.28%.