For the Biogen stock forecast, we are going to look at the daily, weekly, and monthly time frames to see if the technical setups are bullish or bearish and where I think the stock is headed.
We will also take a little dive into the recent Biogen stock price news to see what the story is looking like.
If you are unfamiliar with who Biogen then they are an American multinational biotechnology company based in Cambridge, Massachusetts, specializing in the discovery, development, and delivery of therapies for the treatment of neurological diseases to patients worldwide. (https://en.wikipedia.org/wiki/Biogen)
I do not currently own shares of BIIB and have no plans to do so within the next 24-48 hours. All information here is my opinion and should not be taken as financial advice.
The reason why this stock popped up on my radar last week was due to the news their shares surged early in the week from the FDA accepting their application for Alzheimer’s treatment.
No drug for Alzheimer’s has been approved in 17 years so this is a pretty big deal because it is a step in the process for approval. It is not guaranteed their drug to treat Alzheimer’s will be approved but it is still very noteworthy.
So without further ado let’s get into the technical analysis.
Biogen Stock Price History Technical Analysis
In the chart above we are looking at the monthly time frame so this trade setup will take time to complete, more than likely we are talking about years.
When the price came down and hit the 38.2% Fibonacci retracement level at $273.49 then that kicked off this long setup. It is basically just the basic ABCD setup where we are looking for a target of $562 to be point D.
I pointed the price target out in the chart so hopefully, it is easy to read.
The price has currently found support at the 50% Fibonacci retracement level around $227.56 where it bounced off of.
So with the price target being at $562 this stock does offer some very nice long term potential.
Since support at around $204 has been set in this move then my stop loss for this trade would be around $190.
Daily Short Setup for the Biogen Stock Forecast
Biogen does have a potential short setup but it has not yet started. The price needs to go back up and hit $302.30 for the short setup to be valid.
If it does with the current swing pivot low of $257.34 not being broken then the target we would be looking for would be $225.35.
But there is a big gap I pointed out in the picture above. It is from $229.75 to $257.60 so it is a pretty sizable gap that will more than likely come down and be filled.
The big move up that happened this past week created a gap as well but that has come back and is almost already filled.
I am looking for the big gap that I mentioned 1st to come back and get filled. If it does then it would make this short setup not valid because the pivot low of $257.34 would be broken and the 38% Fibonacci retracement level would not have been hit to start this short setup.
But if the stock price of Biogen does go back up and hit at least the 38% Fibonacci retracement level at $302.28 then this would more than likely be a very nice short setup with that big gap that needs to be filled on the way to the profit target of $225.35.
1-Hour Long Setup
If you are looking for a much shorter time frame trade then you are in luck! There is a long setup using the 1-hour chart.
The target is $304.84. But in my opinion, I would be looking for one thing to happen first before I would buy this stock for this setup.
What I would be looking for would be for the gap that I highlighted to come back and be filled at around $271.
When this happens then I would look to go long. This is the gap that was created from the application acceptance of the FDA for their Alzheimer’s drug.
Of course, the price could go up and hit the price target without filling the gap but for the way I trade (full disclaimer, I am not taking this trade) I would wait for the gap to be filled in order to get in at a better price and to lower your loss in case of being stopped out.
Speaking of a stop loss I would have my stop loss around $262.50. This is normally lower than I would have it for this type of trade but the reason why is because there is another small gap below the larger gap I highlighted.
This would ensure that if the price does come down and fill that gap as well, like say a flash move down to fill it and then popping back up then this would probably keep you safe but nothing is guaranteed.
Video Review
BIIB Stock News
The big breaking news from today is that Biogen had its shares surge today because of the FDA’s application for Alzheimer’s treatment.
Biogen Inc. (BIIB) – Get Report shares surged higher Wednesday after the drugmaker asked the U.S. Food & Drug Administration for a priority review of its key treatment for Alzheimer’s disease, just over a year after abandoning late-stage trials.
Biogen said the application for approval of aducanumab, a treatment for patients with mild cognitive impairment due to Alzheimer’s disease or mild Alzheimer’s disease dementia, gives the FDA 60 days to either accept or review, after which it will make a determination on its potential approval.
But the recent analysis and news have not been all positive for the Biogen stock forecast.
https://www.fool.com/investing/2020/06/10/should-you-sell-biogen-stock.aspx
Biogen (NASDAQ:BIIB) has taken its shareholders on a roller-coaster ride over the past year or so, and more potential trouble is on the horizon for the biotech. Given that, now may be a good time for shareholders to consider jumping ship — at least, so says Bernstein analyst Aaron Gal.
Here is an article that provides a bunch of fundamental analysis but also some technical analysis as well. They also do not think that Biogen is currently a buy.
https://www.investors.com/news/technology/biogen-stock-buy-now/?src=A00220
No, it’s not time to buy Biogen stock.
Shares aren’t currently forming a definitive chart pattern.
There are also some caveats to Biogen stock. Although sales and earnings are growing, revenue growth is out of line with CAN SLIM rules for investing. Analysts also don’t expect those metrics to come in line with savvy investing rules in the second quarter.
Aducanumab stands a chance of being a high point for Biogen. But analysts expect Biogen stock to be choppy as investors wait for the biotech company to ask for approval. There’s also no guarantee the FDA will approve aducanumab in Alzheimer’s treatment.
Further, Biogen and Vir are teaming up on a coronavirus treatment, but it could take some time before the drug enters clinical studies. This comes as Biogen faces a new rival in spinal muscular atrophy and questions regarding sales of multiple sclerosis treatments.
Investors should also keep an eye on sales growth as well as ongoing efforts for new multiple sclerosis treatments, plus the result of Biogen’s appeal in the Tecfidera patent case.
For more updated daily news on Biogen then you can check out Finviz for daily updates: https://finviz.com/quote.ashx?t=biib
Or if you are looking for their investor relations page then here it is: https://investors.biogen.com/
The conclusion to the Biogen Stock Forecast
Overall, if the FDA does eventually approve the Alzheimer’s drug that Biogen is working on then I feel very confident in saying that the price target of the long in the monthly setup would go up and be fulfilled which is at $562.
That is the big news out of them for the Biogen stock forecast that could propel the stock into levels it has never seen.
The stock does look like it is consolidating for the next move higher. The picture below will show a bullish flag that the stock could be in for the monthly chart.
This is a stock where I think we could see another move up as displayed in the monthly setup from above plus since the stock is showing the signs of being in a bullish flag formation.
