Regeneron Stock Plunges 4.67% As Bearish Signals Dominate Technical Charts

Candlestick Theory
Regeneron’s recent candlestick patterns reveal heightened volatility and bearish momentum. The September 23 session formed a long red candle (-4.67%), signaling strong selling pressure after a failed recovery near $600. Subsequent sessions show indecision, with the current close at $555.51 forming a bearish continuation pattern following yesterday’s minor bullish attempt. Key resistance is established at $576–$581 (recent swing highs and psychological barrier), while support sits near $545–$550, aligning with August lows. A breach below $550 may trigger further downside.
Moving Average Theory
The 50-day moving average (centered near $570) and 200-day MA (near $590) confirm a bearish intermediate-term trend. Regeneron’s price remains below both averages, with the 50-day crossing below the 200-day in June 2025 (a "death cross"), reinforcing long-term bearishness. Recent bounces faltered near the declining 50-day MA, indicating it acts as dynamic resistance. The 100-day MA (near $580) further solidifies the $575–$585 zone as a supply area, where sellers repeatedly dominate.
MACD & KDJ Indicators
MACD shows sustained bearish momentum, with the histogram in negative territory since early September and the signal line below zero. KDJ (settings: 9,3,3) indicates oversold conditions, with the %K line at 18 and %D at 23. However, both oscillators lack bullish divergence; price and indicators are declining in tandem, suggesting no imminent reversal. MACD’s sustained negative trajectory warns that oversold KDJ readings may not yet signal a bottom.
Bollinger Bands
Volatility expanded sharply during the late September sell-off, with the bands widening as price tested the lower band ($548–$552). The current price hugging the lower band denotes persistent downside pressure. Historical band squeezes (e.g., August 2025) preceded directional breaks, suggesting the current expansion may extend. A close above the mid-band ($575) is needed to neutralize bearish volatility.
Volume-Price Relationship
Distribution days (high volume on declines) validate recent bearishness, notably the 2.17M shares traded during the September 19 sell-off (-1.12%). Conversely, rallies lack volume conviction—e.g., September 18’s 2.26% gain occurred on below-average volume. The latest session’s 1.39M shares traded during a -3.72% drop confirms bearish participation. This divergence suggests weak demand during recoveries and strong supply during declines.
Relative Strength Index (RSI)
Daily RSI (14-period) at 36 edges toward oversold territory (<30) but remains above extreme levels. It has not crossed below 30 since May 2025, limiting oversold reliability. Bearishly, RSI failed to breach 50 during August’s recovery, reflecting waning upside momentum. A drop below 30 would signal oversold conditions but requires confirmation from other indicators to imply a reversal.
Fibonacci Retracement
Applying Fibonacci to the May 30 low ($490.28) and August 15 high ($598.16): the 61.8% retracement at $543 aligns with critical August support. The 50% level at $544 held briefly in late August, but a decisive close below this zone may target the 78.6% retracement near $515. Overhead, the 38.2% resistance ($569) coincides with the 200-day MA, creating a confluence barrier.
Confluence & Divergence Synthesis
Confluent bearish signals dominate: MA resistance clusters at $570–$585, volume confirms downtrends, and MACD/KDJ alignment suggests sustained downside. Divergences exist between oversold KDJ and price action, yet without RSI extremes or reversal patterns, they lack reliability. The $543–$550 Fibonacci/volume support zone is pivotal. A breakdown here may accelerate selling toward $515, while reclaiming $576 resistance (candlestick high + 50-day MA) is necessary to challenge bearish structure. Probabilistically, trend continuation appears favored absent a bullish catalyst.