Shares of Biogen (BIIB) , a biotechnology company that makes advanced drugs to treat patients with diseases like multiple sclerosis and Alzheimer's disease, have been quietly basing the past five months following a big price decline. Let's check out the charts ahead of their latest earnings release scheduled before the market opening Wednesday.
In the daily bar chart of BIIB, below, we can see how the shares have been hammering out a bottom formation. Notice the heavy turnover (volume) back in December and January? This high volume period may have been when some weak holders of BIIB sold and others with deeper pockets bought.
The shares declined further to a low in March. Prices recovered into April and then retested the March low in May and June. BIIB has improved and now trades above the rising 50-day moving average line.
The 200-day moving average line is within reach and intersects around $226 or so. The On-Balance-Volume (OBV) line has turned upwards after a low in May/June. The trend-following Moving Average Convergence Divergence (MACD) oscillator is now in bullish territory.