Looking for a trade setup for tomorrow? Here’s my take on Repligen ($RGEN) (February 27, 2020)
RGEN SP-500 RGEN
On a day like today when things are really in the tank; S&P 500 ( INDEXSP: .INX ), one of the things I like to do in the Chart of the Day is, find something that maybe you might be able to make a little bit of money on tomorrow; a very short-term trade. One of the stocks that could fill that bill is Repligen ( NASDAQ: RGEN ). A couple of days ago it undercut the 200-day moving average. Yesterday it stabilized, today a big gap down. It’s kind of like, oh crap, we’re going even lower, but then the bulls come in and took the stock up. It’s the first time since this high, it’s the first time where the stock actually closed higher than it opened.
Also, this is the first time, during this decline when the intraday high was actually higher than the prior days here. This is a little bit of microsurgery here on the stock but you could even just see yesterday the intraday low was still a little bit higher than the prior day. And so the takeaway is, on this day, yesterday, Wednesday, on this day the selling pressure was not as great as it was the prior day. That’s a really important thing to note because when the selling pressure starts to wane it doesn’t mean that the stock is going to be just springing hard and rallying because buying pressure increases and the stock is going to zoom up.
No. It’s not necessarily meaning that. It just means that when the selling pressure wanes and you can see it here. There are 3 possible ways that the stock can go: It can either snap back. It can trade sideways. Or it can continue falling. What I am saying is, that when you see this kind of higher intraday low it kind of takes this one out of the equation and leaves just some kind of possibility to be in this fan somewhere. So that is kind of what you are looking for is this type of a move in the stock after it has made a higher intraday low after a big nasty sell-off. Now we get this and the stock tanked today. At one point it’s down another 5 percent or so, but then we got a reversal into the close.
So what I am going to be looking for, let’s get all the price action in there, what I am going to be looking for tomorrow is actually a move above today’s intraday high. The intraday high here is 88.37, so if the stock runs up above 88.40, we’ll say, if the stock runs up above 88.40 then that might be a trade that you can take. I wouldn’t have a lot of confidence in it for a long hold because the 50-day looms overhead and this is a heck of a lot of supply from this big sell-off here.
The stock traded down that low, now, anybody who bought in this box here is not happy that they did so. Therefore, as the stock starts moving up I think you are going to be flushing out a lot of sellers. As such, if the stock runs up here if you can get $2.00 or $3.00 out of it that is all I would look for. Seriously, everything these days, if you are trading, it is literally for a short-term trade and you are using intraday charts.
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