BIIB dominated by bulls lifting the market higher throughout the day
Biogen Inc. (BIIB) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BIIB ended the month -12.88% lower at 267.55 after gaining $7.20 (2.77%) today, outperforming the Nasdaq 100 (1.96%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 263.68, Biogen confirmed its breakout through the previous session high after trading up to $4.79 above it intraday.
Daily Candlestick Chart (BIIB as at Jun 30, 2020):
Tuesday's trading range has been $8.10 (3.1%), that's slightly above the last trading month's daily average range of $7.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 White Candle. The last time a White Candle showed up on June 19th, BIIB actually lost -2.48% on the following trading day.
Prices are trading close to the key technical resistance level at 271.99 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 273.01 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Biogen. Out of 273 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 57.14% with an average market move of 1.00%.