Is Regulus Preparing For A Huge Breakout?
Approximately two weeks ago the S&P 500 finally broke through its 2065 resistance. At the same time, the Nasdaq Composite pushed above its 4800 resistance.
Expectations at that time would have been for higher prices, and that’s exactly what the market has given investors since those breakouts.
The S&P’s channel resistance, which currently sits near 2130, would be the best upside target and a selloff of some magnitude may begin from there.
Until that time, many biotech stocks have been breaking resistance levels with the overall market. For example, Sangamo Biosciences appears to be breaking its $17 resistance today.
Are there other biotech stocks investors should be watching for potential breakouts? As a matter of fact, yes. Check out Regulus.
The company: Regulus Therapeutics Inc
Ticker Symbol: (NASDAQ: RGLS)
Sector: Healthcare
Industry: Biotechnology
Regulus Therapeutics focuses on the discovery and development of drugs that target microRNAs for the treatment of various diseases in the United States.
The company uses its microRNA product platform to develop anti-miRs. Its clinical candidate products include RG-101, which is a treatment of patients with chronic hepatitis C virus infection.
Review the 1-year chart of Regulus with the added notations:
Regulus had essentially flat-lined from April of last year until October, in which the stock trade between $6 and $8 almost the whole time.
Then, in October the stock skyrocketed to new levels and peaked just above $25/share.
Since that time Regulus has been sideways bound with support around $15 and a clear resistance at $20. A break above that resistance should mean a test of the old high.
Investors should watch for a possible breakout on Regulus.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.
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