REGN closes within previous day's range after lackluster session
Regeneron Pharmaceuticals Inc. (REGN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
REGN finished the week -1.18% lower at 569.91 after gaining $8.93 (1.59%) today on low volume, notably outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. 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 in a lackluster session.
Daily Candlestick Chart (REGN as at May 22, 2020):
Friday's trading range has been $16.07 (2.88%), that's below the last trading month's daily average range of $18.66. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for REGN. Prices continued to consolidate within a tight trading range between 556.68 and 583.54 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 578.77 (R1). After having been unable to move lower than 556.68 in the prior session, Regeneron found buyers again around the same price level today at 558.12. The last time this happened on Tuesday, REGN gained 3.46% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 580.55 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 556.68 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Regeneron. Out of 537 times, REGN closed higher 52.89% 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 56.61% with an average market move of 1.83%.