In his No-Huddle Offense segment of Tuesday's Mad Money, Jim Cramer sounded off on our past year trying to deal with COVID. He said while we're finally starting to do a better job getting people vaccinated, just about all of the other rules, regulations and plans surrounding this pandemic have been downright nonsensical.
On Tuesday we learned that Regeneron's (REGN) cocktail for treating high-risk patients has proven to be highly effective in reducing hospitalizations and death. But will this drug ever see the light of day? Or will it get lost in the red tape, relegated to a government stockpile?
Let's check out the charts to see what investors may be thinking.
In this daily bar chart of REGN, below, we can see that prices have been in a downtrend since July. REGN is trading below the declining 50-day moving average line AND the declining 200-day moving average line.
The On-Balance-Volume (OBV) line has generally been on the defensive since June.
The 12-day price momentum study shows a low in late November and a higher low in February which gives us a bullish divergence when compared to prices making lower lows. This divergence could foreshadow higher prices ahead if trading volume increases.
In this weekly bar chart of REGN, below, we can see that prices have been in a downtrend for several months. REGN is trading below the declining 40-week moving average line.
The weekly OBV line has been declining from May of 2020 and tells me that sellers of REGN have been more aggressive for the past 10 months.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but very close to making a cover shorts buy signal.
In this daily Point and Figure chart of REGN, below, we can see a potential upside price target in the $600 area. We can also see plenty of potential overhead resistance.
In this weekly Point and Figure chart of REGN, below, we can see a bearish downside price target of $324. Ouch.
Bottom line strategy: I have no special knowledge about Regeneron's cocktail for treating high-risk COVID patients but the charts are not particularly attractive at this point in time. I am in no rush to be a buyer.
