BIIB breaks below Tuesday's low
Biogen Inc. (BIIB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
BIIB ended Wednesday at 276.39 losing $2.06 (-0.74%), but still outperforming the Nasdaq 100 (-1.67%). Trading $4.01 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Tuesday's low at 276.45, the stock confirmed its breakout through the prior session low after trading up to $2.18 below it intraday.
Daily Candlestick Chart (BIIB as at Sep 16, 2020):
Wednesday's trading range has been $10.73 (3.82%), that's far above the last trading month's daily average range of $6.73. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BIIB.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on August 5th, BIIB actually gained 0.54% on the following trading day. In spite of a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical support level at 273.01 (S1). Biogen closed back below the 20-day moving average at 277.31.
BIIB shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Biogen. Out of 510 times, BIIB closed higher 56.86% 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 57.65% with an average market move of 1.49%.