Published: December 30th, 2021
According to a recent report from The Korea Economic daily, Samsung Group is in talks to buy Biogen. As per the news, Biogen approaches the Korean Conglomerate with the price of 50 trillion Korean won or $42 billion, including control premium.
The price is above the current market value of Biogen, which is nearly at $38 billion, even after today’s price change. Biogen is a US pharmaceutical company that may make a strong presence of Samsung in the industry. There are 33 treatments in the line of this company which is a potential investment opportunity in this stock. However, Samsung did not respond to the article, but the news immediately impacted the BIIB Price.
Currently, Biogen Stock is offering Return on Equity at 19.47%, whereas the latest quarterly earnings report came at $2.75 billion, which is above analysts’ expectations.
Let’s see the upcoming price direction from the Biogen Stock (BIIB) technical analysis:
Biogen stock started 2021 with tremendous buying pressure where the price shot higher from 268.00 to 468.00 level. Later on, the price showed corrective force but came below the January 2021 low with a corrective momentum.
The long consolidation throughout the year is a sign that bulls are still interested in joining the party, where following their path became easy with the recent channel breakout. In addition, the trendline resistance from January 2021 high to November 2021 high is broken with an impulsive bullish pressure, indicating that another impulse may come soon.
The recent price is above the dynamic 20 EMA where the MACD Histogram turned bullish with a Divergence in MACD lines. Therefore, based on the daily context, the upcoming price direction is bullish as long as it trades above the dynamic 20 EMA in the daily chart. In that case, the primary target of the bullish pressure is towards the 279.23 resistance level. On the other hand, a break below the 223.51 would open new rooms for bears towards the 200.00 level.
According to the Ichimoku Cloud analysis, the current market trend turned bullish as the price made a bullish breakout above the Kumo Cloud with an H4 close. Meanwhile, the Future cloud turned bullish where Senkou Span A moved above Senkou Span B. Moreover, the Lagging Span showed a bullish breakout from the recent chart, indicating more bullishness.
The above image shows how the RSI turned bullish above the overbought 70 level, which shows aggressive buying pressure in the BIIB H4 chart. Meanwhile, the bullish breakout from the dynamic Tenkan Sen and Kijun Sen appeared, signifying that short-term and medium-term investors are in buying mode.
Therefore, any bearish correction towards the static 242.84 level would be a buying opportunity in this instrument where the primary target would be 279.23. On the other hand, a break below the Cloud Support with a bearish H4 close would be a selling opportunity in this stock with the target of 200.00 level.
After the strong bullish breakout, investors should find the price towards any reliable discounted area to go long from the intraday chart. The current price showed a massive breakout from the 242.84 area that created a between the price and dynamic 20 EMA. Therefore, any bearish correction and bullish rejection from the dynamic 20 EMA would be a potential buying opportunity in this instrument.
The above image shows how the MACD Histogram shot higher and positioned above the zero line. Meanwhile, the bullish breakout from the dynamic 20 EMA and weekly VWAP signifies a massive buyer’s interest in the price, which is valid until the price reaches the 242.84 event level.
According to the current observation, Biogen stock (BIIB) is more likely to take the price up towards the recent all-time high. However, investors should wait for a daily candle close above the channel breakout to confirm the buying trend and wait for a pullback. Any bullish rejection from 250.00 to 230.00 would be a reliable buying opportunity in this stock.