Biogen has lagged the scorching hot biotech group this summer. Why? Well, Wednesday Biogen Idec (BIIB) announced some apparently disappointing data on its Alzheimer’s drug. Look for more color on that during Thursday’s Biogen earnings report conference call, a report that will now be watched by many Biotech investors. How BIIB earnings are received coupled with what they say on their Alzheimer’s drug will likely move the Biogen stock.
According to estimize, Wall Street analysts are expecting BIIB earnings to come in with an EPS of 4.10 on 2.71 Billion in revenue (the estimize community is expecting a touch better). After years of blowing estimates out of the water, more recently growth has slowed and analysts have caught up to the stock. Can Biogen re-accelerate growth and re-energize the stock?
Looking at the daily stock chart of Biogen (BIIB) a few things stand out. The open gap resistance at 420 is strong and could be a magnet on a good report. That said, 435ish is the strongest resistance level out there. Shares are also trading within a tightening range (trying to hold the downside of that range). The reaction to this report may determine the next intermediate move.
Biogen Stock Chart (BIIB) – Daily
Some key technical price levels to note on Biogen stock include: the gap at 310, 350, 370, 415, 435
The options market is pricing in a 19 dollar move, which could take shares down to a test of the 200 day moving average area or up towards the recent range high area. Depending on Biogen earnings, the stock may become tempting if we see a move through the 200 day.
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The author does not have a position in the mentioned securities at the time of publication. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
