Biogen Inc. (BIIB) announced it has completed the submission of its U.S. marketing application seeking approval of aducanumab for Alzheimer's disease. It has requested Priority Review of the filing. The company plans to discuss applications with regulators in Europe and Japan.
Let's see what Biogen's charts look like Wednesday morning.
In the daily bar chart of BIIB, below, we can see that the shares have been in a large sideways trading range from late October. The $270-$260 area has acted as support and buyers have entered that area a number of times. Traders using moving averages for buy and sell signals have probably been frustrated the past 12 months. Currently BIIB is trading below the declining 50-day moving average line and below the cresting 200-day line.
The On-Balance-Volume (OBV) line has also moved sideways since October suggesting a balance between buyers and sellers of BIIB. The OBV line shows a slight drift lower the past two months telling us that sellers were slightly more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has recently crossed to the upside for a cover shorts buy signal.
In the weekly bar chart of BIIB, below, we can see a large sideways trading range for the past three years. Nimble traders could have made money but buy-and-hold investors have probably been frustrated. Prices are below the rising 40-week moving average line.
The weekly OBV line has moved up and down with the price action. The MACD oscillator recently moved below the zero line for an outright sell signal.
In this Point and Figure chart of BIIB, below, we can see that prices reached a downside price target of $287.
Bottom-line strategy: I have no idea whether this new drug will be a "blockbuster" for revenue but the charts will look stronger if BIIB can close above $310.