Leading biotechnology company, Regeneron Pharmaceuticals Inc (REGN), has been steadily declining since July 20th, 2020. At that time of the peak, the stock traded as high as $664.64 a share. Today, REGN shares are trading around the $513.87 level. Regeneron (REGN) has been in the news a lot lately as President Trump credits its COVID-19 therapeutic drug for healing him during his bout with the virus. Since that time, the biotech company has also received emergency use authorization from the FDA for its antibody cocktail. Despite the positive news the shares have still slumped. The stock is now trading below the important 50 and 200-day moving averages. This puts the stock in a weak technical position on the charts and often signals further downside for the shares in the near term.
Regeneron shares should have very solid chart support around the $470.00 level. This support area is where there is a major 50.0% retrace from the 2019 lows to the July 2020 highs. This alone will generally provide a lot of chart support when tested. The $470.00 area is also where the stock broke out of a choppy one month base from February 2020 to April 2020. I will be looking at a long position in REGN stock at this major support level.
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