In this chart the channels 1,2,3 are of equal distance.
On the week of Feb 24th REGN broke out of the channel 1 and within the next 4 months it proceeded to gain over 50%.
It did break out to a new All time high(ATH) as well , and momentarily had broken out into channel 3.
This week (06/22) we saw that the perceived support of channel 3 didn't hold.
Although I'm playing this short , I'll do so with a great deal of caution.
Marked in red is the Bearish idea I'm playing: Since REGN got rejected of the channel 3 is possible that the old time high won't hold as support as well.
REGN could then Test the highs of 2017 ( marked by the circles) before potentially testing a possible double resistance ( resistance of old time high and resistance of channel2)
In this particular scenario (if it happens ) a short position will be taken and cut losses will happen if REGN breaks above to channel 3 on the weekly chart.
Now on the bullish side : If REGN breaks above the $630 perceived resistance of channel 2 it could push higher torwards the $700 mark(marked in green pattern ).
It would be nice if it than comes and tests the OLD time high and perceived support of channel 3 , thus making it clear that a long position would be profitable perhaps to $800+
These support and resistance areas change as time progresses.
So although $800+ would be resistance at around 09/2021 that same resistance line would be $780 just a year later.
So, continue to study the charts and adjust as time moves on.
Trade with care and have fun!
R.I.P( Research Invest Prosper)
On the week of Feb 24th REGN broke out of the channel 1 and within the next 4 months it proceeded to gain over 50%.
It did break out to a new All time high(ATH) as well , and momentarily had broken out into channel 3.
This week (06/22) we saw that the perceived support of channel 3 didn't hold.
Although I'm playing this short , I'll do so with a great deal of caution.
Marked in red is the Bearish idea I'm playing: Since REGN got rejected of the channel 3 is possible that the old time high won't hold as support as well.
REGN could then Test the highs of 2017 ( marked by the circles) before potentially testing a possible double resistance ( resistance of old time high and resistance of channel2)
In this particular scenario (if it happens ) a short position will be taken and cut losses will happen if REGN breaks above to channel 3 on the weekly chart.
Now on the bullish side : If REGN breaks above the $630 perceived resistance of channel 2 it could push higher torwards the $700 mark(marked in green pattern ).
It would be nice if it than comes and tests the OLD time high and perceived support of channel 3 , thus making it clear that a long position would be profitable perhaps to $800+
These support and resistance areas change as time progresses.
So although $800+ would be resistance at around 09/2021 that same resistance line would be $780 just a year later.
So, continue to study the charts and adjust as time moves on.
Trade with care and have fun!
R.I.P( Research Invest Prosper)