If one was to look for stocks that have been crushed, Valeant Pharmaceuticals (VRX) comes to mind.
How bad has it been for VRX? How about a 90% decline in less than a year. The decline in this stock might have something to do with the Bio-Tech sectors huge under performance compared to the broad market, over the past 12-months.
Below looks at an update on VRX.
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The Power of the Pattern believes that for the broad market to head a good deal higher, it wants/needs Bio-Tech and Financials to start doing better.
As mentioned above, the only thing VRX has proven so far, is that investors want out of this stock.
If VRX is to start heading higher, it has to first prove it can break free from this 1-year falling channel, where it has lost 90% of its value.
What VRX does with the test of resistance at (1), should have a big impact on this stock, the Bio-Tech sector and the broad markets.
Keep a close on VRX to see if selling continues or its different this time!