BIIB closes lower for the 4th day in a row
Biogen Inc. (BIIB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, BIIB finished the month 2.67% higher at 274.69 after losing $0.17 (-0.06%) today, notably underperforming the Nasdaq 100 (1.78%). Trading up to $4.13 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, BIIB actually lost -2.04% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BIIB as at Jul 31, 2020):
Friday's trading range has been $5.40 (1.97%), that's slightly below the last trading month's daily average range of $6.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BIIB.
One bullish candlestick pattern matches today's price action, the Takuri Line.
After trading down to 269.31 earlier during the day, the stock bounced off the key technical support level at 273.01 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Biogen. Out of 56 times, BIIB closed higher 53.57% 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 60.71% with an average market move of 1.08%.