Biotech firm Biogen (BIIB) traded 20% higher on Friday morning, after announcing encouraging results for a phase 2 trial related to Alzheimer’s disease.
Biogen’s drug, known as BAN2401, showed positive results compared to a placebo in the latest trials.
The study used 18 months of data from 856 patients with early-stage Alzheimer’s disease. Chief Medical Officer Alfred Sandrock explained, “The prospect of being able to offer meaningful disease-modifying therapies to individuals suffering from this terrible disease is both exciting and humbling.” The drug was developed in partnership with Japanese pharmaceuticals company Eisai (ESALY).
In analyzing the weekly chart for BIIB, we can see the stock is in the rising phase of its current minor cycle. Having pulled back from its highs of the session, we see this coming down to the $340 level by the end of the cycle.
Longer-term cycles suggest that BIIB may be in the early stages of this move higher. As such, if it does pull back to the $340 support, that would be our buy area for a potential jump to a new high.
The brackets at the bottom of the chart represent the market cycles for this stock.
Biogen (BIIB) Stock Chart with Weekly Bars
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