Hudson said the world will have a vaccine for Covid-19, but it likely will take 12 to 18 months to get there. In the meantime, Sanofi is partnering with Regeneron Pharmaceuticals (REGN) to put Kevzara, a rheumatoid arthritis drug, into clinical trials as a possible treatment for Covid-19. Hudson said there are reports that some patients saw benefits from the drug.
Hudson also said Sanofi plans to bring drug ingredient manufacturing to Europe. He said the world cannot rely on just India and China for key ingredients.
Let's check out a few key charts to see what sort of potential SNY is showing now.
In this daily bar chart of SNY, below, we can see that prices made a small double-top formation with twin peaks in January and February. Prices quickly declined from $51 to just $38, but we can see that traders and investors rejected the weakness below $39. Prices have rebounded in recent days. Notice the increase in trading volume the past two months as some investors liquidated and probably others used the weakness to buy.
The daily On-Balance-Volume (OBV) line shows a relatively shallow decline over the past two months, telling us that sellers of SNY were not that aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside for a cover shorts buy signal. This is not an outright go long message, but it is a good start.
In this weekly bar chart of SNY, below, we can see that prices declined back to the lows of early 2018. Prices are below the declining 40-week moving average line. The weekly OBV line is generally positive over the past three years with only a minor decline this year. Notice how the line may be starting to rise again. The MACD oscillator has turned lower, but for now is still above the zero line.
In this first Point and Figure chart of SNY, below, we used daily price data and a percentage scaling technique. Here the chart indicates a possible downside price objective in the $32 area. A rally to $44.83 will change the picture and the price target.
In this second Point and Figure chart of SNY, below, we present a much longer-term view. Here we used a traditional plotting technique with equal dollar increments and less noise with only showing $5 reversals. Here an upside price target of $99 is projected.
Bottom line strategy: In the current market environment we would all like to discover a stock that could double. Our second Point and Figure chart of SNY, above, could be giving us the right message. Investors could go long SNY here and risk a close below $39.