Chart Of The Week: Regeneron's Prescription for Market Blues

The Spring has been a painful time for biotech's in 2016, they have been caught with fits n' starts since bottoming with the market in early February.  Yet these are the growth names that should be leading the stock market higher, and when that doesn't happen money flees quickly.  As we see with Regeneron the range is pretty much intact and the lows in the mid 360 area has held on four occasions.  The bold move in early April was rejected soundly, but there is a potentially bullish pattern setting up.

The W pattern is one we have seen repeatedly - a double bottom and then right side of the base carved out as the stock makes new highs.  A MACD buy signal is on the cusp, momentum indicators also have some room to move up before getting overbought.  We like this to at least get toward the top end of the range near 430 where the next decision will take place.


Watch the Video here.

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