Two months ago I wrote up an analysis of Regeneron Pharmaceuticals Inc. (REGN) , where I wrote "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." In two months, REGN has soared to $399 to leave our price target in the dust. What now?
In this daily bar chart of REGN, below, we can see that prices are on a tear to the upside. REGN is well above the rising 50-day moving average line and the still declining 200-day line. The 50-day average is moving up fast and could soon cross the 200-day line for a bullish golden cross.
The daily On-Balance-Volume (OBV) line has been rising since early May and supports the bull move to the upside. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in the middle of June for an outright go long signal and it is poised to issue a fresh go long signal as it turns up again.
In this weekly bar chart of REGN, below, we can see that prices are above the declining 40-week moving average line. The weekly OBV line has been moving up and the weekly MACD oscillator is close to crossing the zero line. If REGN retraces two-thirds of its last decline prices could advance to $420 and higher.
In this Point and Figure chart of REGN, below, we can see the fresh upside breakout.
Bottom line: Raise sell stops from below $290 to $345 to lock in some gains. Look for further strength into the $420-$450 area.