REGN drops to lowest close since December 28, 2018
Regeneron Pharmaceuticals Inc. (REGN) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, REGN finished Tuesday at 367.69 losing $7.81 (-2.08%) on high volume, significantly underperforming the Nasdaq 100 (0.34%). Today's close at 367.69 marks the lowest recorded closing price since December 28, 2018. Closing below Monday's low at 375.20, the stock confirmed its breakout through the prior session low after trading up to $8.80 below it intraday.
Daily Candlestick Chart (REGN as at Apr 16, 2019):
Tuesday's trading range has been $16.60 (4.39%), that's far above the last trading month's daily average range of $10.06. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for REGN.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 399.55.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
With prices trading close to this year's low at 366.01, downside momentum could accelerate should Regeneron break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Regeneron. Out of 77 times, REGN closed higher 50.65% 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 55.84% with an average market move of 1.33%.