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Will BIOGEN INC breakout?

By Mill Chart

Last update: Jul 11, 2024

Our stock screener has flagged BIOGEN INC (NASDAQ:BIIB) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:BIIB for potential movement.

BIIB Daily chart on 2024-07-11

In-Depth Technical Analysis of NASDAQ:BIIB

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, BIIB scores 7 out of 10 in our technical rating. BIIB has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

  • The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
  • When compared to the yearly performance of all other stocks, BIIB outperforms 41% of them, which is more or less in line with the market.
  • BIIB is part of the Biotechnology industry. There are 575 other stocks in this industry, BIIB did better than 67% of them.
  • BIIB is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so BIIB is lagging the market.
  • In the last month BIIB has a been trading in the 220.02 - 236.81 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of BIIB for a complete technical analysis.

Why is NASDAQ:BIIB a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:BIIB exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, BIIB also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 232.76. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 228.57, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for BIIB in the last couple of days, which is a good sign.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.