Regeneron Pharmaceuticals (REGN)
The stock of Regeneron Pharmaceuticals (NASDAQ: REGN) seems to have finished out it’s first correction as a higher low forms this week on the daily chart.
The price dropped down below the $470 level as forecasted last week, and I believe it has now shaken out the weaker players as price has rinsed out all the logical entry points.
You see…There are a lot of negative emotions generated when a stock rallies, then gives back all of it’s paper profits.
This “psych out” whipsaw provokes the inexperienced and uninformed to obsess, worry and second guess themselves and many of them will panic and exit their trades, often at a loss…
JUST before the higher low forms and the bigger moves of a new uptrend are formed.
This price action does offer a nice “second chance entry” for those who missed the initial call, or for more aggressive traders who wish to add to the position in anticipation of a rally next week.