Regeneron Pharmaceuticals is a high-flying biotech name that is slowly maturing into a big pharma company. As it makes that transition, though, we’re seeing some volatility. Witness the severe moves up and down just since last summer. From a high around 450 to a low near 320, that is a huge range, especially considering it occurred in the span of eight days!

However, since early December we have seen Regeneron’s volatility calm down a bit with lower market volatility. The stock has made a symmetrical triangle with lower highs and higher lows. Technically that means there is no trend, because the stock base is at a lower level. You might think the next move would be lower, yet the evidence seems to weigh in favor of some upside.

Improved relative strength and a new MACD buy signal are bullish signs, and strong volume during up sessions tells us that institutions are buying. I believe a move above the 390 resistance will lead to a gap fill around 420 sooner rather than later.

Regeneron Pharmaceuticals (Nasdaq:REGN ) Video Chart Analysis

Take a deeper dive into the chart action on tech stock Regeneron Pharmaceuticals Nasdaq: REGN and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.

(Video length 00:03:08)