$BHC out of the flag new TPsStrong buy after MA 200 has come with insane violence. After a pull back of few days we have seen the start of a new uptrend. First TP is around 26,7 dollars where the gap down has left its trail.
Valeant
BHC close to buy zoneAs showed in the chart $BHC comes from a long bullish flag. Price is reaching the buy zone where the major bullish trendline goes through. It's not yet a buy but we are approching such zone. Strategy: watch and wait.
$BHC almost a buy: under the radarI am waiting for an entry long in $BHC but positive signs are already there especially RSI is giving an insight, MA 200 is almost close and it might be probable a new test. Monthly RSI is down and on a weekly basis price is approcing the pullback of the third bullish wave.
For the time being, given the positive earnings release a bullish trend continuation is highly probable but I would not exclude somewhat time to complete the flag in order to reach the main trendline in red. If it is not like that a bullish signal will be given ....only.... when the price breaks the upper edge of the flag.
For aggressive traders an entry long might be done even today with really tight SL.
BHC Bausch Health: possible opportunity in the next daysAlthough earnings are releasing next week, the today's session for $BHC will be critical: a trend inversion might be possible on a daily basis, yesterday price formed a dragon fly bullish as the arrow shows.
This must be confirmed with a black (green) candle today in order to develop minimum of swing, otherwise there will be no signs for an inversion in the short term.
Ground seems to be ready even because RSI (oscillator) is near the range of 30-40 which means that it is charged enough to support a bullish trend.
Conclusions
For aggressive traders entry long might be done today with tight SL. Price actually flows over a solid support around 21.50 dollars.
For conservative traders: watch and wait at least today.
VRX warning: overbought and RSI oscillator in divergenceI haven't taken position since VRX released its q1 because I was not very convinced about its fundamentals. (Nontheless good long opportunities have come in, but my strategy is also to combine foundamentals and techical analysis, especially for such volatile stock). On top of it, EPS turned out negative. Now we have situation where the price is clearly in the overbought area plus RSI is flagging up a divergence as the last pick of Friday is lower than the pick happened on Wednesday. I recommend to watch it out carefully as we haven't clear signs of short but signs of closing long position.
Price has gone far from the main uptrend line as showed in the picture
Another consideration is that the price has reached a key resistance level around 25.90 as I had previously discussed some time ago.
I expect a retracement which might be quite consistent as it rallied more than 30% in the last few months. I would use the line and the Fibonacci retracement for further analysis.
VRX a possible short with tight SLIn the last days vrx has seen a small rally and the price reache 17,23 dollars. This is the area where there is a first resistence as the top reached in March. A break of this line will have as a second step would be around 17.90. Unfortunately yesterday price closed with an hammer so a backdown movement is probable till the bottom line. It is not escluded that price will get into the trading range between the red lines. In both cases red/red or red/yellow what I see is a consolidation phase that at the moment is still bearish. Only a violent movement or with strong volume would change the picture.
VRX downtrend broken but still weakValeant after weeks of downtrend finally broken some days ago is still weak. MA 50 and MA 200 are about to be crossed over (sign of weakness). The major trendline is located at 13.20 roughly. It is possibe a period of trading range movement between 17.2 and 14.97. An unpside would be possible after that threshold but before the new data on Q1 2018 I see it hard.
Moment of truth for Valeant VRXThis image explains better than words what has happened. For the future: above the trendline is a positive sign, below it may get another downtrend. 18.50/18.10 doble resitence yesterday we had pull back up of prices at that level. Let's see what will happen this week as this is crucial level.
Price consolidation after first TPNothing relevant to flag up on VRX but at the moment price consolidation. Yesterday we got an engulfish bullish on a daily chart, price has closed on the upper part of the candle stick. A dinamic trendline defines the edge. Supertrend is positive MACD negative.
VRX toward the first TPVRX yesterday has reached the first TP around 24.3/24.5 according to what happened some years ago. I expect some resistence here. if such hurdle will be step over, I expect another resistence at 26/27. This because some investors will take profit from the rally began in November: From 11 dollars to 19 (the neckline) 8 dollars of difference. 8+19= 27. Third TP is around 32/33 dollars. In the meantime Valeant will present at JP Morgan healthcare conference on the 10 jan, whilst fresch data on bussiness activity will be rolled out on 22 of febraury.
uptrend lines for Valeantyesterday VRX -1.81% closed with price down 1.81%. I report in the chart 2 trendlines one of which has been "violeted" (dotted one). An horizontal trendline defines a graphic support of short term lateral movement (price consolidaton). Below those we have tha main basic uptrend lasting several months.
possible new uptrend line for ValeantYesterday I bet on a new trend line but I had needed a confirmation about the minimum which was given today, this is why I decided to post my idea. If confirmed during next sessions the new uptrend will accelerate.
Valeant: what's nextApologies for the chart but I don't have the premium version. I tried to figure out the next levels:
Here the summary:
1. 25.80
2. 33.20
3. 38.50
VRX imminent attack to 18 dollarsVRX after the correction largly expected, yesterday as demostrated a strong bullish counterattack closing the session slightly less than the short entry recovering mostly 100%. The pattern therefore shows clearly the uptrend line in place. Investors are considering a Q4 better than Q3 looking for new confirmation about debit reduction, so I expect price will move up, breaking down the barrier set at 18 dollars. In case of confirmation this would be a strong signal as Valeant is gaining back attention and potential turn around. Still there is a long way to go through, but what is important right now to highlight is that the trend has been confirmed.
Careful with VRX possible retracementWe reached 17.70 dollars and than a fast pullback as it was for the day before. Important resistence near 18 with possible retracement on the ascendent trendline first and the second dotted trendline after. Personally I sold it at 17 in order to see what it will look like next weeks. RSI overbought, MACD still positive.
Is VRX recharging for a new rally?We have seen in the last few days a dynamic resistance that characterized the pull back of the price from a threshold range between 16.95-16.75. Today the lowest minimum price touched 16.00 dollars (around -2% compare to opening). Violent and prompt reaction with high volatility intraday had set the price at 16.45 +0.3%. 16$ was the point where the ascendant trend line supported the price. Will we see an attack to 17 dollars next days?
VRX Movement forcast before ER and after.I do not expect a very sharp move before ER. To be in a safe side I prefer to write expensive puts at strike price of 16.5 USD or 16 USD for after ER and I would like to bet on the long side. $VRX $VRX.CA
$VRX Long: Symmetrical TriangleSymmetrical triangle and channel breakouts indicate possible long entry here.
$VRX - Possible downfall, acqusition of $AGN not doneDue to worse than expected ER, and lowered guidance, and top of all failed $AGN acquisition, it is very possible that $VRX is going to $90-$100 price level. Company is not profitable and even if their international profits rise (mostly Russia and Europe), there are problems in creating sustainable growth.
