REGN closes below its opening price unable to hold early session gains
Regeneron Pharmaceuticals Inc. (REGN) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
REGN ended the week 1.96% higher at 372.83 after losing $8.86 (-2.32%) today, but still outperforming the Nasdaq 100 (-3.3%) following today's NFP report. Trading $9.92 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (REGN as at Dec 07, 2018):
Friday's trading range has been $18.85 (4.97%), that's far above the last trading month's daily average range of $12.59. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for REGN.
Prices are trading close to the key technical support level at 361.18 (S1). The stock closed back below the 100-day moving average at 375.32. When this moving average was crossed below the last time on Tuesday, REGN actually gained 2.38% on the following trading day.
Regeneron shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could speed up should prices move below the close-by swing low at 364.89 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R2" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Regeneron. Out of 12 times, REGN closed higher 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.33% with an average market move of 1.89%.