Beaten-Down Biogen Could Finally Be Reaching an 'Interesting' Level

The shares have been cut in half over the last six months.

Biogen Inc. (BIIB)  stock has suffered a number of sinking spells over the years. The latest decline started in early June when prices briefly reached the $460 area. Six months later and prices have been cut in half. Is this enough punishment? Would farsighted investors be interested at this price level?

Let's check the charts and indicators.

In the daily bar chart of BIIB, below, we can see that the shares are trading below the declining 50-day moving average line as well as the declining 200-day line. The trading volume looks like it has increased since the middle of October. Heavier volume in a price decline can sometimes mask accumulation. The On-Balance-Volume (OBV) line shows a decline the past six months but so far the early December low has not been broken.

The 12-day price momentum study in the lower panel shows a low in September and a higher low in early December. When compared to the price action of lower lows, the momentum study presents us with a bullish divergence and tells us that the pace of the decline is slowing -- this can be a sign of scale-down buying by farsighted investors.

 

In the weekly Japanese candlestick chart of BIIB, below, we can see that the shares are back to a price area that held back in 2019. Prices are below the declining 40-week moving average line. The 12-week price momentum study is showing improvement from November.

 

The weekly OBV line shows a low in late November.

 

 

In this daily Point and Figure chart BIIB, below, we can see an upside price target in the $272 area.

 

 

Bottom-line strategy: It is early in the "game" but traders might want to put shares of BIIB on their shopping list for 2022.

 

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