On June 9 we reviewed the charts of Regeneron ( REGN) . We recommended that "traders who went long REGN on or about April 14 should continue to hold those positions. Add to longs on strength and raise stop protection to $480."
Well, the shares have rallied towards our Point and Figure price target of $588 so another review of the charts is in order.
In the updated daily bar chart of REGN, below, we can see that prices have rapidly taken off on the upside. The shares are trading above the rising 50-day moving average line and the bottoming 200-day moving average line. The 50-day line is ready to cross above the 200-day line for a bullish golden cross buy signal.
The On-Balance-Volume (OBV) line has moved higher to confirm the price gains with signs of more aggressive buying. The trend-following Moving Average Convergence Divergence (MACD) oscillator has continued its bullish movement.
In the weekly Japanese candlestick chart of REGN, below, we see a bullish picture. Prices are in a rally with no top reversal patterns. The slope of the 40-week moving average line is positive.
The weekly OBV line is pointed up and the MACD oscillator is crossing the zero line for an outright buy signal.
In this daily Point and Figure chart of REGN, below we can see that prices have reached a price target of $588.
This weekly Point and Figure chart of REGN, below, is projecting the $775 area as a potential price target.
Bottom-line strategy: Continue to hold longs from our prior recommendations. Raise stop protection to $525 from $480. The round number of $600 is our next target followed by the $660 area. Longer-term, the $775 area is possible in 2022.
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