Biotechnology Industry Technical AnalysisArchive
- 1/8/2021 -
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BIOGEN IDEC INC (BIIB)
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|It was a first positive week for the BIOGEN IDEC INC (BIIB). During the week, the BIIB gained 7.68 points, or 3.14%, and closed at 252.54 on Friday, January 8, 2021. Weekly volume was -22% below average. |
Long-term trend: [See BIIB long-term trend chart]
A long-term downtrend had started on March 20, 2015 at 480.18 and reached 215.78 on September 4, 2019. BIIB lost 264.40 points, or 55.06%, in 232 weeks. The chart has formed a Descending Triangle chart pattern. The trend support level is at 212.71 and resistance is at 321.48. A Descending Triangle is a variation of triangle formation that has a flat support line and falling resistance line. The lower highs indicate the decreasing demand and give the descending triangle definitive bearish bias. A Descending Triangle usually represents a distribution stage in bearish market. A Descending Triangle is considered to be a continuation pattern, especially in a down trend, but it may also mark a reversal in an uptrend. Use the following link to access a Descending Triangle chart pattern help, or use a Technical Stock Screener to see the list of stocks with Descending Triangle pattern in a long-term trend.
Medium-term trend: [See BIIB medium-term trend chart]
A medium-term downtrend had started on April 20, 2020 at 350.24 and reached 223.25 on November 9, 2020. BIIB lost 126.99 points, or 36.26%, in 29 weeks. Price is near the Fibonacci 23.6% retracement level. The Fibonacci retracement level is considered a support/resistance level.
Weekly Technical Indicators: [See BIIB weekly technical indicators chart]
Weekly Williams' Percentage Range and Lane's Stochastic are oversold. Use the Technical Stock Screener to see the list of stocks with weekly oversold Williams' Percentage Range and Lane's Stochastic. During the last week, weekly Lane's Stochastic main line (%K) has rallied above the oversold signal line (%D). Such crossover is considered a bullish signal. Oscillators are designed to signal a possible trend reversal. They can act as alerts and should be taken in conjunction with other technical analysis tools. Oscillators can be used to confirm other technical signals. Use the following links to access Lane's Stochastic and Williams' Percentage Range help.
The weekly MACD line is below its signal line since November 6, 2020. This is an indication that the medium-term trend is down. The distance between MACD and the signal line is low and getting smaller. It indicates that the current medium-term downtrend is getting weak. Use the following link to access a MACD help.
Short-term trend: [See BIIB short-term trend chart]
A short-term downtrend had started on December 18, 2020 at 253.99 and reached 238.40 on January 4, 2021. BIIB lost 15.59 points, or 6.14%, in 17 days. The chart has formed a Broadening Descending Wedge chart pattern.
Daily Technical Indicators: [See BIIB daily technical indicators chart]
Daily technical indicators are neutral.
The daily MACD line is above its signal line since December 1, 2020. The distance between MACD and the signal line is low, but getting bigger.
A Parabolic SAR (stop and reversal) indicator (252.88) comes close to the price (252.54). It indicates that the trend is getting weaker. A Parabolic SAR is used as a trailing stop loss for long or short positions. It works best during strong trending periods. Use the following links to access Parabolic SAR Help, or use the Technical Stock Screener to see the list of stocks with the Parabolic SAR close to the price level.
During the last week, the price has moved above the moving average in the center of the Bollinger Bands. The distance between the Bollinger Bands is falling, and it was 4.91% on Friday. It is 72.02% lower than one year average. It indicates the period of low volatility of the stock price. The Bollinger Bands are often used with a non-oscillator indicator like chart patterns or a trendline. The signals are considered more reliable if these indicators confirm the recommendation of the Bollinger Bands. Use the following links to access the Bollinger Bands Help, or use the Technical Stock Screener to see the list of stocks with the price above the Upper Bollinger Band or below the Lower Bollinger Band.
During the last week, the price has advanced above the 50 Day Moving Average. Such crossover is considered a bullish signal. The moving average crossover signals work better when the stock develops a strong trend, but they are ineffective when the stock is in a trading range. Moving average crossover systems can be effective, but should be used in conjunction with trend patterns, momentum indicators, candlesticks and other aspects of technical analysis. Use the following links to access Moving Average Crossover trading technique, or use the Technical Stock Screener to see the list of stocks with the Moving Average close to the price level.
Candlestick pattern: [See BIIB candlestick chart pattern]
On Friday the chart has formed a Bearish Advance Block Candlestick pattern. This pattern occurs in an uptrend; it is not a top reversal pattern, but it might precede a meaningful price decline. The reliability of the Bearish Advance Block pattern is medium. Use the Technical Stock Screener to see the list of stocks that had a Bearish Advance Block Candlestick pattern during the last week.