Biogen: 'A Nice Little Trade' Or Heading To New Lows?

Christian Tharp was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Christian Tharp, biotech expert and author of Five Star Stock Watch, discussed a few stocks, including Biogen Inc (NASDAQ: BIIB), which recently experienced a big selloff, and returned to trading above $300 on Monday.

Related Link: The Historical Correlation Between Biotech Stocks And Interest Rates

Tharp started by saying he likes to see Biogen trading once again above $300, which he conceives as a key level. In fact, when the stock plummeted in July, the $300-$320 lines lingered for about two weeks in the charts.

Moreover, he sees “a nice little trade from $300 to $320, tops.” However, a “push back below $300, I would say would probably send the stock back to new lows.”

Shares of Biogen closed down by 1.4 percent at $292.98 on Tuesday.