Biotechnology firm Biogen (BIIB) and their Japan-based partner Eisai Co. Ltd reported better-than-expected results from a late-stage study of their developing Alzheimer's treatment. A successful treatment for Alzheimer's could be worth tens of billions in sales for Biogen. Biogen also received upgrades from several sell-side firms on Wednesday.
BIIB shares have jumped around 50% in early trading activity Wednesday, so let's check the charts and indicators.
In the daily bar chart of BIIB, below, we can see that the shares have traded sideways since February. BIIB is going to gap strongly above the 50-day and the 200-day moving average lines.
The On-Balance-Volume (OBV) line declined into a June low and has improved the past three months, signaling a shift from aggressive selling to aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is slightly below the zero line.