Planning an April Pivot Trade for Biogen BIIB

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:

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:

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).

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

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