Four-Figure Fence:

Long-time readers of mine know my affinity with round number theory. And some figures are more important than others, with names that trade through 90 very often going on to reach par and beyond. A rare number that is not often spoken about is 1000. Thursday NVDA did so catapulting above the figure and could there be room for another to join the exclusive clique? Below is the chart of REGN which is the third largest holding in the more mature IBB and this one has experience near 1000, which may give it a bit more confidence to clear it the second time around. On the WEEKLY chart, one can see it hit the level and recorded a spinning top candle the week ending 3/1, which often indicates exhaustion and it did proceed to fall more than 10%. The MONTHLY chart shows some robustness as it could record a bullish engulfing candle in May, after a very small range in March which registered another spinning top. Notice how the 28-session ADX signal came in very handle calling the near-term bottom in early May. I feel this name has room to 1100 by the end of Q2.

This article requires a Chartsmarter membership. Please click here to join.