Harry has posted a Charts of the Day video on AGN at TheTechTrader site noting: Allergan Inc. (AGN) rolled over, formed a beautiful wedge, and then boom, from 102 to Monday’s low at 81.33, 21 points in 3-4 sessions. It’s a little oversold, however, there may be some more downside at some point. The major rising channel has been pierced and secondary support is being tested. It is not only oversold, but near support, which is currently off in a snapback at 81.99. We’ll see if there’s some kind of consolidation here.
I am looking for a double bottom, retest soon, since a majority of the new entrants are mostly opportunistic traders, who will take profits at some point 'cause they will not hold their hands over the weekend. It is only after the profit-takers depart, that new and committed investors will enter to drive this stock to higher ground; perhaps -- $88 thru $92-- where it will hit some serious resistance all the way into, what I predict will be a very positive 2nd Qtr. report; potentially clearing most resistance for a healing recovery all the way to year-end.
But volatility will be in play along the way -- there is no smooth sailing until some huge positive FDA approval from the pipeline.