Biogen Idec security has been oversold lately and is back now to a relevant support.

Fundamentally, the biotechnology company shows great growth potential joined to a sound financial situation. Sales forecasts are encouraging as suggested by the Thomson-Reuters consensus (9.7 billion in 2014 against 6.9 in 2013). EPS are expected to hike from 7.81 dollars to 12.1. Furthermore, analysts’ consensus targets USD 372 on average.

From a technical viewpoint, prices have fallen sharply upon contact with the USD 327.90 short term resistance. This bearish movement pushed down the stock toward the 299.30 midterm support. This level was tested several times and proved its relevance, giving prices a strong boost each time.

Thus, according to those fundamental and technical factors, it seems opportune to take a long position on Biogen Idec security on the current prices to take advantage of the likely stimulus, targeting a return toward the USD 327.90 short term resistance, then the USD 346.30 midterm one. However, a stop loss will be placed under the current support, in case of a more pronounced bearish movement.