Planning an April Pivot Trade for Biogen BIIB

Apr 21, 2014: 10:45 AM CST

Biogen (BIIB) is setting up an inflection or “Pivot Trade” that we can study as it unfolds in real time in the week(s) ahead.

Let’s take a look at the set-up and plan the targets from a movement away from the current “make or break” pivot.

Here’s the Daily Chart and key level:

Biogen BIIB Inflection Pivot Point Trade Setup Trade Planning

I crave simplicity, and the key inflection point for BIIB shares is the $300 level.  Not only is it the falling 20 day EMA ($298) but it’s also a yellow-highlighted Polarity Level (a price point that has served as prior resistance and support and could serve as resistance again now).

For the moment – and this could change – we’re seeing three doji or reversal candles into this level.

Simple trade targeting suggests that a downward reaction (swing) would carry price back to the $270 important pivot level (confluence near the lower Bollinger Band and rising 200 day SMA) while an alternate breakout above $300 suggests an advancement to the falling 50 day EMA near $310.

Let’s zoom-in to take a closer look on our targets and parameters as seen on the 30-min intraday chart:

Biogen BIIB Intraday Inflection and FibonaccI Retracement Grid

We can still see the critical level just under $300 per share as our focal point for today.

Though the downtrend and Daily Chart resistance suggests a downward reaction (down away from $295 toward $275 with a stop above $298 or $300), an alternate breakout above $300 sets up a “short-squeeze” break-away play (away from $300) toward the $310 or $315 price and Fibonacci Levels.

Continue watching price into current resistance, take stops on an unexpected development, and monitor price movement away from current levels either toward $275 (downtrend continuity) or toward $310/$315 (breakout/short-squeeze).

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Corey Rosenbloom, CMT
Afraid to Trade.com

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4 Comments

4 Responses to “Planning an April Pivot Trade for Biogen BIIB”

  1. April 21 Range Reference and Market Internals Update for SP500 | Afraid to Trade.com Blog Says:

    […] This logic is similar to the Biogen (BIIB) Swing Trade Planning post I published earlier this morning. […]

  2. April 21 Range Reference and Market Internals Update for SP500 — Trading Your Own Way Says:

    […] This logic is similar to the Biogen (BIIB) Swing Trade Planning post I published earlier this morning. […]

  3. Short Sale Swing Candidate Lesson for Exelon EXC | Afraid to Trade.com Blog Says:

    […] a similar example that developed in Biogen (BIIB) where price initially sliced through overhead resistance to stall at a higher […]

  4. Short Sale Swing Candidate Lesson for Exelon EXC — Trading Your Own Way Says:

    […] a similar example that developed in Biogen (BIIB) where price initially sliced through overhead resistance to stall at a higher […]