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Valeant (VRX) Will Have to Go Against a Lot of Bearish Momentum

Valeant (VRX) has been stabilizing in 2017 after sliding persistently since July 2015. The daily chart below shows a market that could forming a price bottom. 

VRX Daily Chart

(click to enlarge)

The Price Bottom:
- Since November 2016, price has been forming what looks like a rounded bottom. 
- However, the critical resistance around 18-18.75 is holding.
- If price can push above 19, I think it would be more appropriate to say that VRX is in a bullish reversal.
- Otherwise, VRX at most had a period of consolidation, and might return to the bearish mode. 
13 is Key:
- We mentioned that 19 will be a critical resistance.
- 13 will be a critical support.
- If price holds above 13, and especially if the RSI also holds above 40, then the bullish outlook would still remain valid. 
- If price than rebounds and starts pushing towads the common support area between 18 and 19, then I would not rely on the ressitance so much. 
- If price breaks below 13, then UAA would look bearish again, and pressure would be back towards 8.60.


August 8 is earnings day. After earnings, let's see whether price will be above the critical resistance of 19 or below the critical support aroudn 13.