REGN stuck within tight trading range
Regeneron Pharmaceuticals Inc. (REGN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
REGN ended Thursday at 452.30 gaining $22.52 (5.24%), slightly underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. 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 Mar 26, 2020):
Thursday's trading range has been $28.68 (6.72%), that's slightly below the last trading month's daily average range of $34.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for REGN. Prices continued to consolidate within a tight trading range between 424.01 and 471.99 where it has been caught now for the last three trading days.
Regardless of a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on March 6th, REGN actually lost -4.04% on the following trading day.
Prices are trading close to the key technical support level at 424.01 (S1). Prices are trading close to the key technical resistance level at 470.00 (R1). The market found buyers again today around 424.02 for the third trading day in a row after having found demand at 427.08 in the prior session and at 424.01 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 424.01 where further sell stops might get triggered. As prices are trading close to March's low at 418.01, downside momentum could speed up should the stock mark new lows for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Regeneron. Out of 145 times, REGN closed lower 55.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 53.79% with an average market move of -0.19%.