BIIB rises to highest close since November 30, 2018
Biogen Inc. (BIIB) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 9th day in a row, BIIB ended the week 4.67% higher at 333.21 after gaining $2.02 (0.61%) today, outperforming the Nasdaq 100 (-0.3%). Today's close at 333.21 marks the highest recorded closing price since November 30, 2018. Closing above Thursday's high at 331.37, the market confirmed its breakout through the prior session high after trading up to $2.20 above it intraday.
Daily Candlestick Chart (BIIB as at Jan 11, 2019):
Friday's trading range has been $5.74 (1.74%), that's below the last trading month's daily average range of $10.10. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIIB.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on November 6, 2018, BIIB gained 3.51% on the following trading day.
Prices are trading close to the key technical resistance level at 338.72 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 324.20 where further sell stops could get triggered. Further buying might move prices higher should the market test December's close-by high at 338.72.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "9 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Biogen. Out of 2 times, BIIB closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -2.49%.