Allergan Is Putting the Bull Back in Charge

 | Jun 19, 2017 | 2:39 PM EDT
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Action Alerts PLUS holding Allergan  (AGN) looks to be proceeding along our suggested road map. Prices have rallied since late May and are in a position to put the bull back in charge. Let's review the charts and indicators for an updated strategy.

In this daily bar chart of AGN, below, we can see prices are back above the flat 50-day and 200-day moving average lines. There is some chart resistance above the market in the $240-$250 area, but I suspect we could see prices break through this area as the On-Balance-Volume (OBV) line has moved up strongly and is not far from a new high above the February peak. The Moving Average Convergence Divergence (MACD) oscillator crossed to a cover-shorts buy signal in early June and is crossing the zero line for an outright go-long signal.

In this weekly chart of AGN, below, we can see prices have climbed back above the flat 40-week moving average line. The weekly OBV line is improving and the weekly MACD oscillator is above the zero line and poised for a fresh go-long signal.

In this Point and Figure chart of AGN, below, we can see $284 is an upside price target. A trade at $252 will be a double top breakout.

Bottom line: AGN looks strong and could break out over the $240-$250 resistance area. Raise sell stops to a close below $225. Our Point and Figure price target is $284.

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