It looks like aggressive buyers have been active in recent weeks in Biogen Inc. (BIIB) -- and the stock could rally in the days and weeks ahead. Let's check out the latest charts and indicators to see how to proceed.
In this daily bar chart of BIIB, below, we can see a three-month sideways pattern after the huge downside price gaps in March. Trading volume has been higher since late March than it was in previous months. The moving averages are just catching up to the price action.
The daily On-Balance-Volume (OBV) line chopped sideways in April and May but it has strengthened this month and suggests that buyers of BIIB have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has returned to the zero line from way below, so we should get a bullish crossover any day now.
In this weekly bar chart of BIIB, below, we see the choppy trading of the past three years. Prices are below the declining 40-week moving average line. The weekly OBV line is showing improvement from a March low and the weekly MACD oscillator has crossed to a cover-shorts buy signal.
In this Point and Figure chart of BIIB, below, the downside price gap is filled in as if prices traded there. Prices are at the top end of a small accumulation pattern with an upside price target of $291 being projected.
Bottom line strategy: Aggressive traders could go long BIIB around $240 risking to $225 and looking for a rally back to the $290-$300 area.