Biogen (BIIB) made a two-day reversal (from up to down) in late January and began a steep decline that is still not over. With our indicators in a sell mode and lower downside price targets we are in no rush to probe the long side of BIIB. Let's see what the charts are indicating.
In this daily bar chart of BIIB, below, we can see that prices broke the lows of December and the lows of October-November. BIIB is below the declining 50-day moving average line and the still rising 200-day line. The 50-day line is close to breaking below the 200-day line for a belated but bearish dead cross of these two averages. The daily On-Balance-Volume (OBV) line peaked in January after months of rising and is still pointed lower. A declining OBV line tells us that sellers of BIIB have been more aggressive. In the lower panel is the 12-day momentum study and we do not have a bullish divergence to foreshadow a possible reversal.
In this weekly bar chart of BIIB, below, we can see that prices are below the rising 40-week moving average line. The weekly OBV line has been weakening for the past two to three months. The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal.
In this Point and Figure chart of BIIB, below, we can see a downside price target of $255.44.
Bottom line -- BIIB is weak and pointed lower. Our indicators are bearish and prior support is "old" from May and June. I would look for BIIB to continue lower to retest the May lows in the $250 area.