Regeneron Pharmaceuticals (REGN) has had a significant correction from a double-top formation around $600 in August and November, but this major top pattern projects down to $300, unfortunately.
In this chart of REGN, above, the untrained chartist should be able to identify the double-top formation noted above. This double-top measures from $450 at the "neckline" to $600 at the peaks. The amplitude or height of the pattern is $150 ($600-$450) and this distance is subtracted from the neckline at $450 to give us $300 price target. As REGN broke down from the top, it broke below the 50-day average line in December and the 200-day average in January. At the end of January, the two averages crossed for what is commonly called a "death cross."
The On-Balance-Volume (OBV) line peaked and turned down in late October, which tells us that sellers became more aggressive. The OBV line moves lower if volume is heavier on days when REGN closes lower. There is a bullish divergence in this daily chart between the equal lows in price at $360 in February and March and higher lows from the momentum study in the lower panel. This bullish set up with momentum is a positive, but it hasn't resulted in much upside.
This longer-term chart of REGN, above, gives us some perspective to work with. The double-top is clear. Prices have broken below the 40-week moving average line and the slope of that line is bearish. The OBV line is pointed down on this time frame and there is no bullish divergence with momentum on a longer time span. Upside bounces can occur, but it looks like REGN can eventually reach its downside price objective of $300 in the weeks ahead. A rally over $420 would change the picture from bearish to bullish, however.