Regeneron Pharmaceuticals, Inc. (REGN) was reviewed on May 11th, and I wrote that, "We don't have enough technical evidence to recommend a long position but traders should cover shorts and wait for more price information before probing the long side."
It is now a couple weeks later and we have more evidence to support the bull case. Come see.
In this updated daily bar chart of REGN, below, we can see that prices have firmed up towards the still declining 50-day moving average line. A close above the 50-day line could happen any day now.
The On-Balance-Volume (OBV) line has stopped declining and could easily move up to a fresh new high from the early May low. Price momentum is starting to show more positive readings.
In this weekly bar chart of REGN, below, we can see that prices are below the 40-week declining moving average line. No surprise here.
The weekly OBV line is still pointed down but its decline has slowed.
In the lower panel is the weekly Moving Average Convergence Divergence (MACD) oscillator is flat and it will not take much of a rally in price to generate a cover shorts buy signal.
In this candlestick chart of REGN of the past month we can see a spinning top pattern on May 25th and bullish confirmation of a reversal on May 29th.
In this Point and Figure chart of REGN, below, we can see an upside price target of $373.
Bottom line: Aggressive traders could go long REGN at current levels risking below $290 for now and looking for a rally to the $370-$380 area in the weeks ahead.