Regeneron (REGN) announced some great news yesterday. The stock is up 10%. Is it too late to bu..
Discussed in this article: Regeneron Pharmaceuticals Inc. ( $REGN )
Let’s get right to it here; Regeneron ( $REGN Regeneron Pharmaceuticals Inc ). This is a high flyer; you could say it’s a former high flyer that looks like it’s flying again. The stock got way, way, way over bought; we love overbought stocks because they tend to stay that way for a while. And in a bull market, when they get oversold, I’m giving your pearls here, they don’t tend to stay oversold for very long.
So, when you get a pull back like this, to the 50-day moving average, that’s something that you start looking at, right? Today this stock is up almost 10 percent. I wasn’t trading this, I’d like to tell you that I bought it at the open, at 230.23, and I could tell you that but I’d be lying. The thing is if you happen to be watching this stock, you hardly needed to see the news; their studies came in on a drug named Eylea, I wonder if that’s any relation to Princess Leia? Anyway it’s more effective than a placebo in treating retinal disease and so that’s going to push this stock up. The thing is though, because it was at this tactical inflection point, as the market is in general, then when you see this stock start to move up, it’s almost like you didn’t even need to know why; you could have just traded it, but then of course, when you see what the news is then you can trade it with more confidence.
What do you do now? Frankly, I think this stock is still a buy. Make no mistake about it; it’s extended 10 percent above yesterday’s close. The stock still looks like it has more upside, so this is a stock that I think you can be buying right now. If, for some reason the price pulls back a bit tomorrow, maybe in just general market response to a jobs number or something; if this starts pulling back then you really want to watch this level here because I don’t think you’re going to see this level again.
I would definitely still be buying this stock. Just know it’s a really super volatile stock, so don’t just go pile in. Instead just trade it with prudence and discretion, and my bet is you’re going to make some money on it. Just make sure that you have some kind of risk management tool in there someplace, don’t just be a wild-eyed country boy buying stock and just expecting it to all go up; no offense to wild-eyed country boys. Instead, trade with some control and you’re going to do fine.
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