Big Biotech Flashes a 'Bullish' Setup

When a multibillion-dollar company starts to change trend... I take notice. You should, too... [Chaikin PowerFeed]( Big Biotech Flashes a 'Bullish' Setup By Pete Carmasino, chief market strategist, Chaikin Analytics When a multibillion-dollar company starts to change trend... I take notice. You should, too... This company's market cap is roughly $31 billion today. It does more than $10 billion in sales each year. It's in a life-changing business as well. It makes a handful of drugs that treat neurological diseases. And more than half its revenue comes from drugs that treat multiple sclerosis. But like most of the market, this stock has been punished. It's down nearly 50% since it briefly surged to more than $400 per share in June 2021. It's at about $214 per share today. That's a major drop. However, in this essay, I'll show you why this stock is worth watching right now... Recommended Links: [NOW Is the Moment You've Been Waiting For...]( On August 29, a historic unveiling in Houston, Texas could reshape the stock market and create a wave of millionaires on a single investment. [Learn more here (includes free stock ticker)](. [Will This Be the Worst U.S. Crisis Ever?]( Wealthy 73-year-old U.S. entrepreneur retreats to one of his three European properties to issue serious warning (and four recommendations) for Americans. "It falls on someone like me to warn you clearly. I'm too rich to care about money—and too old to care what anyone thinks." [Click here for details](. The company I'm talking about is global biotech giant Biogen (BIIB). Let's start with the Power Gauge's current breakdown of Biogen. The four main factor categories tell a story here... [Chaikin PowerFeed] A "very bullish" outlook in Financials and a "bullish" grade in the Experts category help to shape the overall "bullish" narrative. But to me, the rating is the icing on the cake. In this case, the real "tell" is the technical change on the relative strength indicator... Right now, our relative strength indicator is changing trend to the upside. That means Biogen is now outperforming the SPDR S&P 500 Fund (SPY). Take a look... [Chaikin PowerFeed] This chart is one of the best setups the market can deliver... You can see that Biogen's stock has slowly grinded lower for the past 12 months. And now, the setup we're seeing here is something that typically happens before a big move higher. Let me show you what I mean with another example... Recently, the renewable-energy sector experienced a trend change. That led me to the Invesco Solar Fund (TAN), which was setting up with the same pattern. Take a look... Look at the period between May and June on the chart... Notice that the relative strength indicator started to turn green. The Power Gauge also flipped to "bullish" at the time. And the share price was very stable in a declining market. That means it was building up "buying" pressure. This opportunity had all the makings of a breakout... 1. The relative strength indicator turned positive 2. The stock's Power Gauge rating flipped to "bullish" 3. The industry is front and center again due to the world's energy issues [As I've said in the past]( technical indicators tell you "when"... And the "why" will show up later. Over the past seven weeks, TAN is up roughly 24%. That's an annualized return of more than 200%. Inexperienced investors might not have given TAN a second look. But market pros are constantly searching for these types of clues. And so should you... It's essential to understand that relative strength is the key to bigger gains. Relative strength sometimes starts slow, like it did in TAN's case. But it can quickly become a powerful indicator. It can be an early signal to something important for investors. That's what we're seeing with Biogen today... The stock is setting up with this exact same relative strength pattern. The weight of the evidence is on your side. Add this opportunity to your watch list today. Good investing, Pete Carmasino Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +1.27% 5 20 5 S&P 500 +1.52% 114 280 105 Nasdaq +2.72% 38 43 19 Small Caps +1.42% 481 974 386 Bonds +1.57% Information Technology +2.69% 34 35 7 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are somewhat Bullish. Major indexes are mixed. * * * * Top Movers Gainers [rating] MRNA +15.97% [rating] PYPL +9.25% [rating] NLOK +7.91% [rating] DISH +6.36% [rating] CDAY +6.35% Losers [rating] SEDG -19.13% [rating] MTCH -17.56% [rating] AIZ -10.18% [rating] STE -9.55% [rating] CRL -9.14% * * * * Earnings Report Reporting Today Rating Before Open After Close CI, EPAM, EVRG, K AMGN, SWKS, MNST, ED, VRTX, HII WRK, APD, SRE, PWR, PKI, OGN, NRG, IRM, HWM, FRT, FIS, DUK, COP, CBRE ZTS, VTR, WBD, TECH, RSG, ABMD, REG, PARA, NLOK, MSI, LNT, LLY, CTVA, APA, ALL BALL, BDX, VMC, PENN JCI, PSA, LYV, EXPE, APTV, XRAY No earnings reporting today. Earnings Surprises [rating] BKNG Booking Holdings Inc. Q2 $3.90 Beat by $2.57 [rating] MET MetLife, Inc. Q2 $1.90 Beat by $0.45 [rating] LCID Lucid Group, Inc. Q2 $-0.37 Missed by $-0.08 [rating] ETR Entergy Corporation Q2 $1.78 Beat by $0.38 [rating] O Realty Income Corporation Q2 $0.37 Missed by $-0.09 * * * * Sector Tracker Sector movement over the last 5 days Discretionary +8.03% Utilities +5.03% Information Technology +4.87% Industrials +4.17% Real Estate +2.21% Staples +1.92% Financial +1.70% Materials +1.36% Communication +0.98% Health Care +0.11% Energy -0.43% * * * * Industry Focus Oil & Gas Exploration & Production Services 12 46 2 Over the past 6 months, the Oil & Gas Exploration & Production subsector (XOP) has outperformed the S&P 500 by +31.24%. Its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #3 of 21 subsectors and has moved down 2 slots over the past week. Top Stocks [rating] PBF PBF Energy Inc. [rating] REX REX American Resourc [rating] DINO HF Sinclair Corporat * * * * You have received this e-mail as part of your subscription to PowerFeed. 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