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Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval

Companies / BioTech Jun 11, 2021 - 06:22 PM GMT

By: Chris_Vermeulen

Companies

The FDA issued an accelerated approval status for Biogen’s new Alzheimer drug with specific requirements related to consumer use and results.  In these cases, the FDA is allowing Biogen to move into a more open consumer trial where the results and side-effects of this new drug will be identified fairly quickly.

This new drug targets the plague in the heart and brain that is associated with Alzheimer’s.  Over five million Americans live with some form of Alzheimer’s currently.  The Alzheimers Association continues to provide detailed statistics related to how this disease relates to various segments of American society.  You can read more about how big this announcement is in terms of how Alzheimer’s affects Americans in this 2019 Alzheimer’s Disease Facts And Figures report.

This news of a new Biogen Alzheimer’s drug has sent XBI skyrocketing – yet the news may not be enough to continue to trend across an entire market sector.  The one thing that I would like to point out is that news of a single drug that has entered early-stage accelerated approval by the FDA does not make a new trend – it makes a news blip.


Either way, the long-term results related to the potential success of this new drug may prompt a rally in Biogen and the Biotech sector over the next few months and years. Alzheimer’s is a big problem for many nations across the globe so the potential for this new solution, if priced well, may be huge for Biogen.

The Daily XBI chart below shows a clear downward price channel (CYAN line) that is acting as resistance.  XBI must rally above this level in order to prompt any bigger upside price trend.  As of right now, XBI has rallied up to that level but has stalled near that resistance.  It is likely that the news prompted a big upside trend, however, the reality is that we won’t know how successful this new drug is for Biogen for many months/years.  So, the real opportunity could be a ways away still.

The Weekly XBI chart below highlights recent support near 118.40 (the MAGENTA line) and continues to show the downward sloping resistance channel (the CYAN line).  We believe XBI will have to break out of these price boundaries before it starts any new trends.  Currently, the upside price rally is testing the upper resistance levels.  If it breaks above that level quickly, we may see some bigger upside trending.  If not, it will likely fall back into the range of these boundaries while attempting to find support again.

What does our proprietary BAN strategy say about this new XBI trigger?  Currently, XBI is reporting as BEARISH and is in a RISK OFF trend mode. XBI is also trending/ranking near the bottom of our BAN ETF sector list – meaning that XBI is showing very limited upward trend strength at the moment. This recent news may change that over the next few weeks.  Due to these factors, XBI is not something that BAN would be trading at the moment.

Do you want to know which sectors are ranking near the top of the BAN hotlist?  To know where new BAN trade triggers are being generated and where you will find bullish trend momentum and strength?  New BAN triggers are generated almost every week – are you missing out?

Learn how my BAN Trader Pro Strategy can help you identify and trade better sector setups.  My team and I built this technology to help us identify the strongest and best trade setups in any market sector.  Every day, we deliver these setups to our subscribers along with the BAN Trader Pro system trades.  You owe it to yourself to see how simple it is to trade 30% to 40% of the time to generate incredible results.

Have a great day!

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

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