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.

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3 Biotech Stocks That Could Keep Bombing

Biotech Stocks: Biogen (BIIB)

biib 300x183 3 Biotech Stocks That Could Keep Bombing
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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.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/04/biotech-stocks-amgn-biib-gild/.

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