I don’t know who will win the global race for a successful Alzheimer’s drug but for now, at least, it looks like Biogen (BIIB) was in the spotlight and shares were higher in early Wednesday trading.
Take a look at the charts to see how traders might react to the latest news.
In the BIIB daily bar chart, below, we can see a dramatic bottom from February to late September as the stock rallied higher — up and out of the background. The BIIB is trading above the rising 50-day moving average and above the positive sloping 200-day moving average.
Trading volume has increased over the past three months to help confirm the price increase. The math-based Volume-to-Balance (OBV) line showing a bullish pattern since June tells us that stock buyers have been more active than sellers. Yes, the OBV line can lead the price!
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but in correction mode.
In the BIIB weekly Japanese candlestick chart, below, we see a positive picture. The stocks are pointing up and trading above the rising 40-week moving average.
The weekly OBV line shows a positive trend for the past two years. The MACD oscillator is in an uptrend very high above the zero line.
In this BIIB Daily Point and Figure chart below, we don’t chart the pre-market price action but the chart still shows us a price target in the $449 area.
In this second BIIB Point and Figure chart, below, we see a similar price target of $449.
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