Medicine Mftr Sees Buying Increase

Market Update: In the last trading day, the markets saw another big gain. This was the result of both positive news coming from the Administration and Congress coming close to passing the bill they have agreed to.

Despite this positive news, we believe there is a great deal of uncertainty with the impact of the virus on the economy.

Even after the last two days’ gains, we are still firmly in a bear market as the major indexes are still far below their previous highs.

Now, even though we are still in a bear market, the market could turn quickly just as it did the past two days. To protect ourselves from these whipsaws we like to have a few hedges in our portfolio. We’re always shifting our strategies and adding those hedges in our PowerTrend Options portfolio.

So today’s chart will be for a stock that has remained bullish despite the selloff.

Yesterday, we looked at a Daily Price Chart of Zoom Video Communications, Inc. and noted that the stock had been making a series of higher highs and higher lows.

Today’s chart is a Daily Price Chart with an OBV Chart for Regeneron Pharmaceuticals, Inc. (NYSE: REGN).

Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for treating various medical conditions worldwide. The company’s products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema (DME); myopic choroidal neovascularization; and diabetic retinopathy in patients with DME, as well as macular edema following retinal vein occlusion.

The current price of REGN is trading higher than it was exactly six months ago. The On Balance Volume (OBV) Chart is shown directly below the Daily Price Chart.

Here’s what you need to know about the OBV Line: it measures how much volume is either pushing the stock up, or down. Meaning, the volume of stock that’s being sold or bought.

Using a stock’s volume in this way can confirm an uptrend by reflecting that more people are buying the stock than are selling it. Take a look at the chart below…

OBV chart

We can see from the OBV chart shown above that the On Balance Volume Line for REGN is sloping up.

This indicates that the volume is heavier on up-days and buying pressure is exceeding selling pressure.

Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend. So, the OBV Line is a simple indicator to use that confirms the price uptrend and its sustainability.

We’ll be sure to keep following Regeneron Pharmaceuticals, Inc, as the stock’s buying pressure exceeds its selling pressure and the price uptrend continues.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

Chuck Hughes

Written By Chuck Hughes

Before Chuck Hughes won 10 Trading Championships, he was an accomplished Air Force pilot. In fact, he credits his success as a stock and options trader to his disciplined upbringing and career. When he was deciding between a career in the Navy and a career in the Air Force, the Navy told him he’d only have a 33% chance of flying jets. The Air Force gave him 100%. He liked those odds better. 35 years ago, Chuck had a wife, a young daughter, a son on the way, and a huge mortgage to afford. He didn’t want to give up on his lifelong dream and stop flying for a major commercial airline. He knew he needed to supplement his income during the 15 days a month he wasn’t flying. So he used his experience in discipline and math, and his understanding of finance and the stock markets (which he’d always been interested in,) and opened a $4,600 trading account. He made over $460,000 in profits his first two years of trading, and he hasn’t looked back since. When he was diagnosed with Meniere’s disease 15 years later, which commonly leads to vertigo…He knew his career as a pilot wouldn’t last much longer with those odds. But he didn’t have to scurry to find another gig, or panic about how his family would eat… He’d spent the last 15 years perfecting his system and raking in cash. As an options trader, Chuck does not let his emotions get in the way of his trading strategy. He adheres to disciplined and methodical options and stock trades. Because he respects the options game so highly, and understands the true freedom that financial solvency can bring, Chuck was able to design and refine his system and win those 10 Trading Championships. Put simply, Chuck Hughes’ trading strategies work, and in all types of market conditions. They’ve worked throughout the bull, bear, and flat markets America has seen in the last 30 years. Chuck Hughes has spent that time building a reputation as one of the most trustworthy options traders in the industry. His publishing group Legacy Publishing LLC was one of the few trading groups on the planet to have correctly predicted and profited from the 2008 financial crash .As a published author 16 times over, a 10-time Trading Championship winner, and an options-trading teacher for 25 years, he’s learned to trade and teach without an ego.