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

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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 More US 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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