Shares of Biogen Idec Inc (BIIB) ascended to a new 52-week high in Monday trading session, jumped 7.2% on strong volume to 78.55 after the company released positive Phase III data for its multiple sclerosis drug candidate BG-12. This is definitely a positive sign going forward. In fact, as the chart below indicated, BIIB could follow the so-called trend channel higher, heading toward the 3-year high after breaking out from the bullish flag pattern. Just so that you know, initially profiled in our December 28, 2010 “Swing Trader Bulletin” BIIB had gained about 18% and remained well position.
The graphics below are from our “U.S. Market ETF Trading Map”, which shows the near-term technical bias for BIIB and the S&P 500 index. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.1 – Biogen Idec Inc (daily)
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