Regulus Therapeutics Inc., a biopharmaceutical company, focuses on the discovery and development of drugs that target microRNAs for the treatment of various diseases in the United States. The company uses its microRNA product platform to develop anti-miRs, which is chemically modified and single-stranded oligonucleotide. The company has strategic collaboration with Biogen Idec MA Inc. for the evaluation of the use of microRNA signatures as a biomarker for human patients with multiple sclerosis; AstraZeneca AB to discover and develop microRNA therapeutics for cardiovascular diseases, metabolic diseases, and oncology; and GlaxoSmithKline plc to discover and develop microRNA therapeutics for immuno-inflammatory diseases. It also has strategic collaboration with Sanofi for the discovery and development of microRNA therapeutics comprising miR-21 pre-clinical fibrosis program for the treatment of alport syndrome and preclinical program for oncology indications.
Take a look at the 1-year chart of Regulus (Nasdaq: RGLS) below with my added notations:
RGLS had steadily went nowhere from April until mid-October. Then, the stock jumped massively on route to hitting a new high just above $25. Since that time, the stock has created an obvious resistance at $20 (green). A break above that $20 level should mean higher prices for the stock.
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The Tale of the Tape: RGLS has a key level of resistance at $20. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $20.
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
Follow me on Twitter: @cmtstockcoach