Biogen Continues To Decline After Friday's Rout

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Bigen Inc BIIB shares were trading lower by $12 (2 percent) at $389.71 in Monday's session. Its decline is continuing for the second trading day in a row after missing Wall Street estimates for EPS and revenue last week.

After dipping under $400 to $395 on Friday, it recovered to close at $401.71. However, the rally off Monday's open stalled at $403.345 and the stock is well under $400, recently made an intraday low at $388.08 and has not been able to manage much of rebound.

The current low coincides with a series of four lows between $386.14 and $388.67 that occurred in mid-February. It has not closed under $400 since February 4, when it ended the session $391.12.

Even at these lower levels, many investors who have been owners of the issue since the end of last year are still in the green, as it began the year at $339.45. The longer the issue takes to mount a rally back over $400, the more likely it is that investors may be looking to exit on weakness, exacerbating the momentum of the decline.