Sunday, November 24, 2013

REGN Regeneron Pharmaceuticals Weekly Chart Rising Wedge Negative Divergence Price Extended

Regeneron is a huge biotech high-flyer. From 5 in 2004 to 295 in 2013, +5800%, a near 60-bagger, in 8 short years. Also, from 50 to 295, +490%, almost a 6-bagger, in the last 21 months. Future Fed Chair Yellen does not see any asset bubbles in markets; everything looks perfectly fine. The bull flag off the bottom in 2005 shows the first leg from 5 to 30, then the sideways to sideways lower consolidation flag, and then the second leg from 20 creates the target at 45 that was easily achieved. Price explodes higher during the ongoing biotech orgy this year. The strong biotech sector is very instrumental in the small cap RUT printing new highs this year.

The red lines show the negative divergence and the pink dots show the price extended well above the moving averages requiring a mean reversion (lower prices). The indicators are content with REGN moving lower from here forward.  Considering the 80/20 rule, the breach of 280 should lead to 320, and it did in late September. REGN is likely an attractive  short, for speculative traders, here forward. Another 320 print would be a very attractive short entry. The 100-180 range would not be surprising in 2014. Perhaps the biotechs are next to roll over like the tech and other high-flyers recently like TSLA? This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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