Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines for the treatment of serious medical conditions. The company’s commercial products include EYLEA injection for the treatment of neovascular age-related macular degeneration; and ARCALYST injection for subcutaneous use for the treatment of cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome in adults and children. Its products under Phase III clinical development stage consists of EYLEA for the treatment of serious eye diseases; ZALTRAP, which is developed in oncology; and ARCALYST for the prevention of gout flares in patients initiating uric acid-lowering treatment.
The company’s earlier stage clinical programs include various human monoclonal antibodies, such as REGN727 for low-density lipoprotein cholesterol reduction; REGN88 for rheumatoid arthritis; REGN668 for atopic dermatitis and eosinophilic asthma; REGN421 and REGN910 for oncology; REGN475 for the treatment of pain; REGN846 for atopic dermatitis; and REGN728, REGN1033, and REGN1154. It also conducts preclinical research programs in the areas of oncology and angiogenesis, ophthalmology, metabolic and related diseases, muscle diseases and disorders, inflammation and immune diseases, bone and cartilage, pain, cardiovascular diseases, and infectious diseases.
To review Regeneron’s stock, please take a look at the 1-year chart of REGN (Regeneron Pharmaceuticals, Inc.) below with my added notations:
REGN has had a nice run from its $100 bottom in February until its $190 peak in December. Over the last (5) months though, the stock has created a couple of key price levels to watch. First, the stock formed a clear support level at $165 (blue) that was also resistance back in October. Next, the stock has formed a down trending resistance level (red). These two levels combined have the stock stuck within a common chart pattern known as a descending triangle that will eventually have to break one way or another.
The Tale of the Tape: REGN is trading between a $165 support and a downtrending resistance. A long play could be made on a pullback to $165 or on a break through the resistance. The ideal short play would be on a break below $165.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT