I wrote about Biogen Inc. (BIIB) on Friday before the opening bell and the huge upside price gap, noting that, "If you are long BIIB based on our prior recommendations you are probably smiling this morning. Yes! Raise sell stop protection to $305 from $275. Prices are likely to trade sideways in the $330-$350 area before moving up to $370 and then my $416 price target."
With prices nearly reaching my $370 price target on Friday another look is warranted on Biogen, which Jim Cramer discusses on Real Money today.
In this updated daily bar chart of BIIB, below, we only have more more price entry than what we had last week. Volume was very heavy and the high/low price range was wider than I anticipated. Prices closed in the upper half of the range, which is generally considered bullish.
Last week we looked at a weekly chart but today I want to present a lot more data -- back to 2002. There is a nine-year base pattern in the $30-$60 area before the runup into 2015. The price action from 2014 could be considered a high level consolidation pattern that is breaking out on the upside.
The height of the pattern is around $180 so that can be added to the breakout at $360 for a $540 price target.
In this longer-term weekly Point and Figure chart of BIIB you can see a potential price target of $523.
Bottom line: After reaching our $416 price target traders can set their sights on the $523-$540 area longer-term. Expect some volatility along the way.