Biogen (BIIB) developed the first real Alzheimer’s drug, a breakthrough the industry had been chasing for decades.
When it got approved, the stock ran hard.
Then the rollout took longer than the early excitement assumed, the share price cooled off, and BIIB spent a long stretch grinding sideways before it found its footing again.
It has its footing now.
The drug is selling, the company has more clinical data and a key regulatory decision ahead this year, and the chart has quietly turned into one of my favorite kinds of setups.
That setup is what got BIIB on my list, because it fits my TPS framework: trend, pattern, and squeeze lining up on the same name.
Start with the trend
Nothing else matters without it.
BIIB closed Wednesday at $195.96, up nearly 4% on the day, and the EMAs are stacked on the daily, the 8 over the 21 over the 34, with price sitting on top of all three.
The EMAs are exponential moving averages, which smooth out the daily noise to show the real direction of the move, and right now every one of them points higher.
That is a stock under steady accumulation, with buyers in control for months.
Then the pattern
BIIB has climbed from the bottom left of the chart to the upper right, a strong and steady move, and lately it has been working off that run up near its highs instead of rolling over.
A stock that holds its gains instead of handing them back is a stock that wants to go higher.
The part I care about most
Sitting on top of all of it is the squeeze.
The TTM squeeze is a volatility indicator that fires when the daily range compresses into a tight band, and historically, that signals a fast move is coming.
On BIIB, the squeeze is on right now, which means price is coiling and winding up energy. A squeeze on a name already trending this hard is a spring with weight on it, and when it releases, the move can come fast.
That’s the total package.
A strong trend on the daily, a base built right at the highs, and a squeeze winding up underneath it.
These are the type of setups you want to trade.
Not saying it’s going to work. But the chances of making money on strong setups vs. random ones are significantly greater.
Your Action Plan
BIIB is on my watchlist, and I am tracking it closely.
When a setup like this fires, the alert is sent in real time toDaily Profits Live.
Members get my morning watchlist each day, along with my market outlook and trading plan. I then go live during the session, and trade with my members.
And right now I’m super active. I put on positions in five different symbols yesterday, and closed a 75% winner in TSLA, and a 30% winner in CAR.
If you like action, the Daily Profits Live Room is bumping right now.