REGN closes within previous day's range
Regeneron Pharmaceuticals Inc. (REGN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
REGN ended the week 4.63% higher at 399.55 after edging higher $0.74 (0.19%) today on low volume, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $5.62 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 6th, REGN actually lost -2.05% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (REGN as at Feb 14, 2020):
Friday's trading range has been $8.61 (2.16%), that's slightly below the last trading month's daily average range of $10.90. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for REGN. Prices continued to consolidate within a tight trading range between 393.48 and 408.00 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After trading down to 393.48 earlier during the day, the share bounced off the key technical support level at 396.47 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 408.00 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Regeneron. Out of 424 times, REGN closed higher 53.77% 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 57.31% with an average market move of 1.70%.