REGN breaks below key technical support level
Regeneron Pharmaceuticals Inc. (REGN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
REGN ended Wednesday at 569.15 losing $10.75 (-1.85%), slightly underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (REGN as at Sep 16, 2020):
Wednesday's trading range has been $18.42 (3.15%), that's slightly above the last trading month's daily average range of $18.36. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for REGN.
Despite a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 560.78 (S1). Prices broke below the key technical support level at 578.43 (now R1), which is likely to act as resistance going forward. After having been unable to move lower than 567.59 in the previous session, the market found buyers again around the same price level today at 568.02. The last time this happened on September 2nd, REGN actually lost -5.37% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Regeneron. Out of 105 times, REGN closed higher 57.14% 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 57.14% with an average market move of 1.09%.