Are the Bears Taking Control over Allergan?

Published on Monday, 05 December 2011 04:18 Written by Danny Miller

New York, December 5th (TradersHuddle.com) - Shares of Allergan Inc. ( NYSE:AGN) ended the trading session lower by $0.61 or -0.72% from its previous close. Allergan's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Allergan, Inc. ( NYSE:AGN) is a multi-specialty health care company that develops and commercializes pharmaceuticals, biologics and medical devices. The company develops products for the ophthalmic, neurological, medical aesthetics, breast aesthetics, obesity intervention, urological and other specialty markets in countries around the world.

Allergan's current stock range is defined by calculated support defined at $78.42 and by the resistance level at $89.25, which should be used by traders planning their trades.

Traders wanting to establish a position in Allergan stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Allergan shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: