Allergan near Key Resistance Area

Published on Wednesday, 08 September 2010 08:20 Written by Danny Miller

New York, September 8th (TradersHuddle.com) - Shares of Allergan Inc. ( NYSE:AGN) are trading very close to calculated resistance at $65.00 with the current price action closing at just $63.58 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $59.52 and by the resistance level at $65.00, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Allergan, as the stock is well above support, however, as the stock pulls back towards $59.52 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $65.00 then traders will get an opportunity to enter Allergan stock by establishing a position as the stock moves to a higher range.