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Could an opportunity be taking place, after an 80% decline in price? Yes
Valeant Pharma has been in the news, for all the wrong reasons, since last summer. The news has been bad and the price action of the stock has been even worse.
The huge decline in VRX over the past 9-months has VRX testing two long-term support lines, that have been around 16 and 20-years, with both of them meeting at (1) above.
This large decline has momentum deeply oversold and volume has shot up, potentially reflecting panic selling.
Joe Friday Just The Facts…A bounce could take place in this very hard hit stock at (1). This stock is hitting an almost must hold support zone. If support does not hold, it would be bad for the stock and could be hard on the Bio-Tech sector. What VRX does at (1), is very important in several ways!