Shares of Regeneron (REGN) – Get Report continue to bubble higher for the bulls. The stock was rising 2% on Thursday, but for the week it’s up 7.5%.
The boost is coming after President Trump took Regeneron’s Covid-19 cocktail in an effort to combat the coronavirus. His quick return to the White House and positive commentary on Regeneron isn’t hurting either.
Now the company is going for emergency approval from the Food and Drug Administration.
The stock has been on fire in 2020, although not so much over the last few months. When the rest of the market started to tank in late February, Regeneron shares began to rally.
Shares are still up about 60% on the year, despite pulling back 18.75% from peak to trough earlier this summer.
Can the stock get back its mojo and continue higher from here? Let’s look at the charts.
Trading Regeneron Stock
Just look at how strong this stock has been, surging from the 2019 lows near $275 to highs north of $650 in 2020. The rally has been tremendous and it only makes sense that Regeneron stock eventually cooled off.
Remember, consolidation phases are healthy price action.
Over the last month, Regeneron hammered out a solid bottom near the $540 to $550 area. During that time, the 10-week moving average was acting as resistance.
With this week’s action though, the stock has reclaimed the 10-week moving average and so far the stock is holding it as support.
From here, bulls need to see shares maintain above the $575 area and the 10-week moving average. If it can do so, it increases the odds that Regeneron stock can take out this week’s high near $620 and make another run toward the $650 area.
If we can get another breakout over this level, it could put the 161.8% extension in play up near $740.
On the downside, a close below $575 drops it below a key level, as well as the 10-week moving average and this week’s low near $579. It could very well put the $540 to $550 zone back on the table and potentially even the 50-week moving average as well.
It’s important to go from level to level with these stocks, without being too stubborn. When headlines drive part of the narrative, these stocks can move fast and furiously. It’s okay to be wrong in trading, but it’s not okay to stay wrong.