BIIB: Chart of the Day: Biogen (BIIB)

Biogen, Inc. is a biopharmaceutical company, which engages in discovering, developing, and delivering therapies for neurological and neurodegenerative diseases. It offers TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA, and FAMPYRA for the treatment of multiple sclerosis; SPINRAZA for the treatment of spinal muscular atrophy; and FUMADERM for the treatment of severe plaque psoriasis.

Take a look at the 1-year chart of Biogen (BIIB - Get Rating) with the added notations:

Over the past eight months, BIIB has repeatedly formed important lows down in the $270 area, as can be seen back in November, February, and again in March. If the stock makes it back down to the level again, which it looks like it might do soon, a bounce could be expected.

The Tale of the Tape: BIIB has a key level at $270. A trader could enter a long position at or around $270 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

3 STOCKS TO DOUBLE THIS YEAR

Good luck!

Christian Tharp, CMT

@cmtstockcoach

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BIIB shares were trading at $282.09 per share on Wednesday morning, down $0.03 (-0.01%). Year-to-date, BIIB has declined -4.93%, versus a -2.16% rise in the benchmark S&P 500 index during the same period.

About the Author: christian

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...