Shares of generic drug maker Allergan are surging this afternoon. The stock is up over 4% after reaching new 2018 lows earlier in the session. This impressive upside reversal has lifted AGN back above a major support zone near the December 2017 lows as well as last month’s low. With a divergent MACD pattern developing and solid footing underneath the stock is now set up well for a powerful rebound.
In the near term AGN investors should view the $164.00 t0 $160.00 area as a low risk buy zone. If the stock can continue to build a base above this area an important low may be in place. On the downside a close back below $156.00 would violate this week’s low sending a clear signal that a more prolonged basing process is ahead. Until then AGN should be viewed positively.
At time of publication we do not have a position in AGN.