3 Biotech Stocks That Could Keep Bombing
Many investors expect a rebound in biotechs and biotech ETFs like the IBB. But solid ground might be a ways lower from here.
Biotech Stocks: Biogen (BIIB)
Click to Enlarge Since 2010, Biogen (BIIB) has displayed an ever-steepening slope. If the slope had gotten any steeper in February, it would have had to lean back.
As I often point out, steep charts that go vertical almost always are eventually subject to relatively sharper corrections as gravity takes over and a mean-reversion move kicks in.
So far in this correction, BIIB stock has dropped just about 20% off the top, but the rising 200-day MA looms large about 7% lower and likely will act as a magnet in coming days or weeks.
Article printed from InvestorPlace Media, http://investorplace.com/2014/04/biotech-stocks-amgn-biib-gild/.
©2017 InvestorPlace Media, LLC