Major Profit-Taking In Biogen As It Bolts To New All-Time Highs
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Biogen Idec Inc (NASDAQ: BIIB) shares were trading higher by $23.00 (6 percent) at $462.65 in Friday's session. The catalyst for the rally is positive developments in its drug pipeline for the treatment of Alzheimer's disease.
The issue, which traded as high as $480.90 in pre-market trading, stalled at $480.19 off the open and was in a freefall since reaching that elevated level.
In a major burst of profit-taking, Biogen has sliced through the $470/$460 and has crept into the $450 handle and is attempting to stabilize in the mid $450 handle, with $450.06 being the current low.
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The issue is trading in a dangerous area because there may be very little support in the issue as there are no reference areas as Biogen has never traded at these elevated levels. The only identifiable area of support may be $439.90, which represents it former all-time high made in Thursday's session.
Editor's note: At time of publication, shares traded at $459.40.
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