This week's earnings could be a big moment for biotech

With many companies set to report earnings this week, one name in particular could be a make or break for biotech, one trader says.

David Seaburg, head of sales trading at Cowen & Co., said many investors are likely watching Biogen closely ahead of earnings, which could be a big indicator for the entire industry group.

"It's really about the potential of what could happen when Biogen reports," Seaburg said Friday on CNBC's "Trading Nation." "We've seen a total dismantle on the biotech tape."

Biogen is scheduled to report third-quarter earnings before the bell on Wednesday. The biotech space has suffered in recent months, after an attack from Hillary Clinton on price gouging sent stocks tumbling. IBB, the ETF that tracks biotech stocks, has fallen 20 percent in three months.

Read More Biotech falls on Clinton 'price gouging' comments

However, the fear that drove the initial sell-off is receding, Seaburg said. He said even if Clinton becomes president, it would be a long battle to make lasting impact on the pricing practices of biotechnology companies.

"[Earnings] expectations are relatively low," he said. "If they print a good number on Wednesday, it's going to be an absolute catalyst to take the entire large-cap biotech space higher."

Read MoreUS stocks trade lower as Street eyes earnings

But biotech isn't the only space that could break out this week, according to one technician.

Katie Stockton of BTIG said Friday that eBay, set to report after the bell on Wednesday, is nearing a key technical level of $23. The tech company's stock has been in a long-term uptrend going back to 2008, she said, but has recently seen a pullback to a previous resistance level, which has now become support.

"That creates a pretty compelling risk-reward form a technical standpoint," Stockton said on "Trading Nation."

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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