BIIB closes below its opening price unable to hold early session gains
Biogen Inc. (BIIB) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
BIIB finished Wednesday at 276.17 gaining $0.09 (0.03%), slightly underperforming the Nasdaq 100 (0.26%). Trading $1.98 higher after the open, Biogen was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BIIB as at Aug 05, 2020):
Wednesday's trading range has been $4.21 (1.52%), that's below the last trading month's daily average range of $5.70. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BIIB. Prices continued to consolidate within a tight trading range between 274.42 and 279.91 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 273.01 (S1). The stock found buyers again today around 274.42 for the third trading day in a row after having found demand at 275.25 in the prior session and at 274.70 two days ago. The last time this happened on June 29th, BIIB gained 2.77% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 279.91 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 269.31 where further sell stops might get activated.
Among the nine 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 425 times, BIIB closed higher 53.88% 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 53.18% with an average market move of 1.01%.