Allergan plc. (AGN) has been in a downtrend from the middle of 2015 and I do not yet find enough technical evidence that is has ended. AGN could rally in the next few months but that may not be enough to reverse the longer-term decline. Before we get too deep in the weeds let's look at some shorter-term charts and indicators.
In this daily bar chart of AGN, below, we can see a sideways to lower trend for AGN. Prices are above a bottoming 50-day moving average line but below the declining 200-day line. The daily On-Balance-Volume (OBV) line moves up and down with the price action but the recent steep rally in AGN has only seen a tepid move up for the OBV line. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory but the two averages that make up this indicator have begun to narrow towards a bearish crossover.
In this weekly bar chart of AGN, below, we can see a longer decline that has more than halved the price of the stock. AGN is below the flattening 40-week moving average line. The weekly OBV line generally moves low the past three year and only shows limited improvement the past few weeks. The weekly MACD is improving and is about to cross to a cover shorts buy signal.
In this Point and Figure chart of AGN, below, we can see an upside price target of $228.54 being projected.
Bottom line strategy: our three charts (above) and not in alignment. We have an upside price target on the Point and Figure chart that is bullish while the weekly bar chart is still in a major decline. AGN could move higher but some sort of retest of the December low seems in order in the short to intermediate term.