$REGN - on the verge of break-outThe main thesis is that $REGN pattern is similar to $ABBV; though it needed a catalyst for reversal. Today's news is the one + earnings next week.
Target 1: $575 - short-term (earnings as catalyst)
Target 2: $615 - mid-term (post-earnings till next earnings)
Target 3: $650 - mid-year
REGN trade ideas
REGN wedge bounceREGN has had its ups and downs, but since SEP 2019, a trendline was formed on the chart which we are now meeting again. Each time it met this trendline, the stock was met with a hard bounce. After running up to highs in July, the stock has been in a steady downtrend, which accelerated to the downside to meet the larger trendline. This is a great spot for a low risk, high reward long with the target at 505.55 to keep this play conservative. Because this play is contingent on a bounce almost immediately, the stop will be extremely tight and be placed at the break of the lower blue trendline , which will likely be about the 481-482 range, but price action can dictate otherwise. Due to the virus, this company can come out with random news extremely fast, so make sure to keep watch after entering, even if news is not likely.
$REGN and $ABBV - very similar dynamicsThis seems to me more than just coincidence considering the profile of product pipelines and therapeutic areas both companies bet on.
I was watching both for some time and placed a position to $ABBV before earnings @ major support level, which was broken and then turned.
Major support @ 468 (50% monthly Fib level)
Potential upside to 700 with test of ATH 664.
Very good R/R of 1:7.
Good fundamentals on top of above made $REGN a definitive buy for me as I was waiting a good price to enter.
Discussion purpose only, not an advice.