Biogen BIIB is a multinational biotechnology company specialized in discovery, development, manufacturing and delivery of therapies for the treatment of neurogenetic, hematologic and autoimmune disease. The company currently employs 7,800 people.
Biogen’s stock price has declined 34% from 2018-2019 with net income dropping down to $1.72 billion from $2.61 billion last year. However, in this blog, we will take a look at the technical picture of the stock using the Elliott wave theory to identify future price action in the stock below.
BIIB Weekly Elliott Wave Analysis
Looking at the weekly, the cycle from the all time lows is complete at the $442.29 high seen on 3/20/2015. Down from there, the stock is doing a bigger 3 wave pullback to correct the all-time low cycle within Grand Super Cycle degree wave ((II)).
The pullback from the peak takes the form of an Elliott wave zigzag structure where Super Cycle degree wave (a) ended at $205.42. The wave (b) bounce ended in a lesser degree zigzag structure at a high of $388.83. Wave (c) lower remains in progress towards $151.50-$95.55, a 100%-123.6% Fibonacci extension area of (a)-(b).
BIIB Daily Elliott Wave Analysis
Here’s the daily chart, suggesting that so long as a pivot from the $388.83 high stays intact, near-term bounces should fail in 3, 7 or 11 swings for more downside in the stock towards the $151.50-$95.55 area within the Super Cycle degree wave (c). This area should see buyers for next cycle higher or bigger 3 waves bounce at least.
BIIB Daily Alternative Elliott Wave Analysis
Above is the daily alternative view chart, in which the degree of pullback from the 3/20/2015 peak can be unfolding as a double three structure instead of a zigzag structure. In this scenario, the decline to the $205.42 low ended Super Cycle degree wave (w) with a subdivision of a zigzag structure. Then a bounce to a high of $388.83 ended wave (x) with a subdivision also as a zigzag Elliott Wave structure.
Down from there, wave (y) can unfold as a double three structure where it can end the cycle degree wave w in red at $233.98-$165.65, a 100%-161.8% Fibonacci extension area of ((A))-((B)). Then from there, the stock can see a 3 wave bounce against a $388.83 high before a final extension lower towards the $151.50-$95.55 area lower can be seen.
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