Regulus Therapeutics Inc. (NASDAQ:RGLS) gained 8.04% in yesterday’s session, going up from its prior closing price of $1.12 to $1.21, and has now recorded rally in 7 consecutive sessions. It is uncommon for a stock to keep rising for so many consecutive days so a temporary pullback is likely.. The stock price went upward in 9 of the last 10 days and has generated 24.83% during the last two weeks. The upbeat movement of both volume and price during the recent session is interpreted as a good sign, and, overall 1.14 million more shares exchanged hands compared with prior day. In total, 1.62 M shares exchanged hands for about $1.96 million.
Inside RGLS’s Recent Trend
Regulus Therapeutics Inc. (RGLS) has broken the very wide and horizontal trend up. Breaks like this are often followed by swift and strong movements, and any correction down to the breakline at approximately. $1.20 is considered to be a second chance to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach $1.57 sometime over the course of a quarter.
Regulus Therapeutics Inc. Technical Signals
RGLS has witnessed its long term and short term MA triggering a buy signal. Many traders watch for short-term averages to cross above long-term averages to signal the beginning of a uptrend.. Upon corrections, the price will meet support from the averages between $1.08 and $0.98. A break down through these support points will trigger sell signals. Its pivot point low generated buy signal on Tuesday September 05, 2017, which calls for additional surge until the stock forms a new pivot point high. There was increase in both volume and price. This is usually interpreted as a good sign as traders widely believe rising stock should see increasing volume.
Regulus Therapeutics Inc. (NASDAQ:RGLS) Support And Resistance Levels
Regulus Therapeutics Inc. (RGLS) recorded volume accumulation so there will probably be a surplus of buyers at $1.19. It seems to be blessed by the accumulated volume as it meets no resistance above current level and favorable trading conditions will help the stock to show strong performance in the coming days.
Regulus Therapeutics Inc. (RGLS) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.14 between high and low, or 12.73%. The average volatility for the past week stood at 8.49%.
The stock is extremely overbought on RSI14 (79). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the Regulus Therapeutics Inc. has been rising for 7 straight session, the volatility is more likely to increase in the next couple of days.