The technical’s for REGN are showing some signs of stress. First, and most obvious is the PPS 10% correction since May 14 high of $ 282.81, to today’s low of $ 255.09. Daily, since May 14, the low’s are lower and the highs are lower. The MACD is trending lower, and the stock is close to breaking below it’s 20 day SMA.
With regularity, REGN shares go through successive phases of rapid price appreciation followed by consolidation. Consolidation is, for now, the dominant trend. Absent positive catalysts from the company, the current consolidation may bottom near May low’s of $ 214.70, before re-establishing an uptrend.
wouldn't you call the positive data from the PhaseII of Dupilumab a positive catalyst!?
Wouldn't you call UBS' $290 or Roth Capital's $314 price targets a good reason to think that REGN is going to consolidate around its high of $280...?
There is no stress on the stock. I think it is the last attempt from top players to load up before acquisition. They have been doing a great job at correcting the pps these past few days, but the down trend party is almost over. your $214 consolidation is on the low side. We might see $230-$240 before this summer. but all lights are green with the company. it is just a question of timing. will REGN be acquired before the next blockbusters are cleared by the FDA? If not, the stock will hit $300 before year ends.
Yes, I do indeed consider the indicators from the clinical's to be positive, that is why I have been a shareholder. Unfortunately that information is now public, but the reality is the PPS continues to correct.
Please consider the following. A dozen Key officers have been aggressively selling shares since early April. Institutional investors have also been sellers. The stock has frequently experienced periods of investor profit taking, not directly related to the company's longer term prospects. This is one of those periods.
Personally, I use fundamental analysis to identify investable sectors and companies. Technical's and charting are employed to identify favorable risk adjusted reward entry and exit strategies. I trade around a core position, based on the technical's. The charts do show some negative signs that reflect the decline in the stock since May 14.
I would moderately add to my position in the $ 230-$ 240 range, but be more aggressive as the stock approaches $ 214.