BIIB closes within prior day's range
Biogen Inc. (BIIB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
BIIB finished the week -1.68% lower at 333.00 after losing $1.25 (-0.37%) today, underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading $1.39 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 6th, BIIB actually gained 0.43% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BIIB as at Feb 14, 2020):
Friday's trading range has been $3.56 (1.07%), that's slightly below the last trading month's daily average range of $11.68. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BIIB. Prices continued to consolidate within a tight trading range between 329.00 and 340.05 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 340.05 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 338.88 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 329.00 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Biogen. Out of 418 times, BIIB closed higher 53.11% 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 53.11% with an average market move of 0.97%.