$VRX – The short term system is out of Valeant as of the close Friday. A pretty flat trade on either side of the zero line after a big move Friday – wow! From sinner to saint in a day. It’s a volatile stock and needs a little breathing room when trading! The stock poked it’s head above the 200dma but closed right about there. This is the second time in the past week where the 200dma provided resistance, but this time the stock actually got above it for a while. The 50dma is right above and it wouldn’t surprise me if it tried to go up and touch that at some point, assuming it can get enough momentum to stay above the 200dma.
The company made it’s hostile bid offer for Allergan. The world will have to wait to see what happens with the deal, but perhaps the headline news frenzy quiets down for a bit until a decision is made.
Even with the pullback the stock has had a huge run and IBD says it’s “consolidating since February.”