Spring 2016 has painful for the biotech sector, including solid names like Regeneron. After bottoming with the market in early February, they haven’t been able to gain any momentum. Because these are considered growth names and should be leading the stock market higher, the lack of upward movement has caused money to flee – quickly.
As you can see in Regeneron’s chart, its range is pretty much intact from February. The lows in the mid 360 area has held on four separate occasions. A bold move in early April was rejected soundly, but there is a potentially bullish W pattern setting up (the W pattern occurs when a double bottom is made, followed by new highs).
Because of the latest W pattern on the Regeneron chart, a MACD buy signal is on the cusp of flashing. Momentum indicators also have some room to move up before getting overbought. I’ll be looking for this name to get toward the top end of the range (near 430) before I made any trade decisions. For now, let’s keep our eye on this promising biotech.
Regeneron (Nasdaq: REGN) Video Chart Analysis
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About Regeneron
Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions worldwide. Its marketed products include EYLEA injection for the treatment of neovascular age-related macular degeneration and diabetic macular edema, as well as macular edema following retinal vein occlusion; Praluent injection, an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease, who require additional lowering of low-density lipoprotein cholesterol; and ARCALYST for the treatment of cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome in adults and children.
