Here’s your trade on $REGN – December 7, 2022
REGN
Let’s look at Regeneron ( NASDAQ: REGN ) today. Last week this stock had a really nice move, this is really, really tight. The stock had a really nice more out of this squeeze here, 750.00, massive volume, and then a breakout.
I would say this is a Phase 1 move, the squeeze, and then the first breakout is the first phase of, I would look at it as a 3-phase pattern. The first phase is the breakout and then we are looking for an end, for a pause in that breakout, and then a reversal. This isn’t it because, yes, we have a pullback but then a gap down. But then the stock comes even higher, so we are still in Phase 1 territory.
And then you say, Well alright, the jury is still out on that. It looks like maybe this is the end of the move. And then, sure enough, the next day that was the end of the move, the stock traded down for 2-days in a row. It is still really tight between 770.00 and 750.00, very tight.
And then in comes today, it opens up right at the 21-day moving average and closes very high, almost 3 percent higher from the open. So this is where we are sitting right now. And so my suggestion is, go ahead and set your alert right up here at 770.00. If the stock breaks out above 770.00 you are probably going to get another leg higher.
You can see the stock has been really, really choppy, but the uptrend is pretty clear here. There are a lot of oscillations each week. You look at all of these, they look like big tall Doji patterns, where the open and the close for each week are pretty close together and they got big swings both ways.
That is just the volatility of this stock. But if you just look at the way it is actually moving, we will just do a line chart on it here, this is Regeneron ( NASDAQ: REGN ), and it is generally trending higher. It is generally beating the S&P 500 ( INDEXSP: .INX ) as well.
I think this is a stock that you can own, it is not going to keep you up at night. For a biotech company that’s pretty good. So check it out, if you are buying here I would keep a stop, your stop should be no more than 5 percent below where your entry is, that way you are containing your risk.
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