Biogen Inc. (BIIB) has made a small saucer bottom the past three months. Prices look capable of an upside move from here. Let's check out the indicators.
In this daily bar chart, below, we can see that BIIB has rallied above the bottoming 50-day moving average line. BIIB is still well below the cresting 200-day line. The daily On-Balance-Volume (OBV) line has been moving sideways since early March even though prices were still declining into late April. In the bottom panel of this chart we can see a bullish divergence as momentum makes higher lows from February while prices made lower lows. The pace of the decline has been slowing since February and this usually happens when someone steps in to buy weakness.
The positive signals are more subtle on this weekly bar chart of BIIB, below. Prices are still below the declining 40-week moving average line. The weekly OBV line has been steady the past three months as prices declined. The weekly Moving Average Convergence Divergence (MACD) oscillator has been narrowing in recent weeks and could cross to the upside for a cover shorts buy signal.
In this Point and Figure chart of BIIB, below, we can see that prices are close to a small double top breakout. An ambitious upside price target of $339 is indicated.
Bottom line: BIIB looks like it can rally to $310 and maybe higher. Aggressive traders could go long around $280 risking to $260 looking for a rally to $310 or higher.