Regeneron Pharmaceuticals

It's been a good year to own shares of Regeneron Pharmaceuticals REGN; in the last 12 months, the biopharma stock has rallied around 50%. But after a big move higher this past year, shares of REGN are starting to roll over. And it doesn't take an expert technical analyst to see why.

>>5 Rocket Stocks to Buy for Repeat Gains

That's because shares of Regeneron are currently forming a downtrending channel, a price setup that's formed by a pair of parallel trendlines bounding REGN's share price movement. When it comes to price channels, it's about as simple as it gets: Up is good, and down is bad. So now, as Regeneron bounces off of trendline resistance, shares look ready for another leg lower.

The underperformance in REGN is compounded by horrible relative strength at the bottom of the chart. That relative strength line is a particularly important indicator to keep an eye on now, and more underperformance in REGN looks even more likely as a result.

If you liked this article you might like

Regeneron Pharmaceuticals Ready to Make All-Time Highs

Regeneron, BioMarin, AbbVie Could Explode 20% or More -- Analyst

Biotech movers: CEL-SCI Leaps After FDA Lets Cancer Study Move Forward

If It's Not Earnings News, It's Amazon Competition: Jim Cramer's Best Blog

Electronic Arts, Activision Blizzard and Take-Two Interactive: 'Mad Money' Lightning Round