Don't Ignore This Chart!

The View Gets Clearer for Valeant (VRX)


The view for Valeant (VRX) improved substantially this week as the stock broke out of a well-defined base. From a  technical analysis perspective, this is a text book breakout. The stock has based by building a one year range. The new 52-week high broke out of the base this week. The view is a little clearer now for the owner of Bausch and Lomb eye care products. 

The SCTR has surged to 99. The moving averages are in the proper alignment with the 10-week moving average above the 40-week. The volume surged on the breakout which is what we want to see. To cap it off, the MACD is breaking out above zero. You can tell because the first number in the legend is a positive number. The second number is for the signal line and it is just below zero so it shows as a negative number. The third number is how far the MACD is above the signal line and it is positive. 

Arthur Hill and Greg Schnell will present the Market Outlook webinar Saturday, December 9th at 11 AM ET. Join us by following this link.

Good trading,
Greg Schnell, CMT, MFTA.

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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