BIIB dominated by bears dragging the market lower throughout the day
Biogen Inc. (BIIB) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
BIIB ended Monday at 300.26 losing $5.45 (-1.78%), significantly underperforming the Nasdaq 100 (-0.49%). The bears were in full control today, moving the market lower throughout the whole session. 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 Aug 10, 2020):
Monday's trading range has been $10.08 (3.27%), that's far above the last trading month's daily average range of $6.05. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIIB.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 299.29 in the previous session, the share found buyers again around the same price level today at 298.42. The last time this happened on August 6th, BIIB gained 10.10% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 281.42.
Biogen shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Biogen. Out of 301 times, BIIB closed higher 59.80% 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 56.15% with an average market move of 1.70%.