Regeneron Is Pointed Higher, But Here's the Price Where I'd Be a Buyer
Shares of the biotech firm show risks of downdrafts.
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Biotechnology firm Regeneron REGNwas upgraded to an "Outperform" (buy) rating at the sell-side firm Raymond James with a $950 price target.
Let's check out the charts and indicators.
In the daily bar chart of REGN, below, I can see that the shares have moved higher in the past year but the intermittent declines have been heart-stopping to buy-and-hold investors. The shares are currently testing the underside of the cresting 50-day moving average line and above the rising 200-day line.
The trading volume has been choppy the past few months while the On-Balance-Volume (OBV) line has moved higher but with a host of dips. The Moving Average Convergence Divergence (MACD) is slightly below the zero line and poised to make a cover shorts buy signal.
In the weekly Japanese candlestick chart of REGN, below, I can see the longer-term uptrend in the shares but I can also see the lengthy corrections that could easily stop out traders. The shares have recently bounced off the rising 40-week moving average line.
The weekly volume has decreased the past 12 months and I see that as a negative for the rally continuing. The weekly OBV line has climbed to a new high to confirm the price gains. The MACD oscillator made a lower high when prices made a higher high giving us a bearish divergence.
In this daily Point and Figure chart of REGN, below, I can see a potential downside price target in the $684 area. A trade at $861 should refresh the uptrend.
In this weekly Point and Figure chart of REGN, below, I can see the same $684 downside price target.
Bottom-line strategy: The charts of REGN are mixed. I would recommend being a buyer of REGN on strength above $861 but not until then.
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