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Valeant (VRX) signaling further downside

VRX Still Bearish: 
Whatever news you might hear about Valeant (VRX), one thing is for sure. It has been bearish and is in a volatile industry. It is also becoming apparent now that the bearish mode is still intact as price breaks a consolidation pattern seen in the 4H chart.

VRX 4H Chart 8/1

(click to enlarge)

- VRX ha been in a bullish correction since late June, climbing from 18.55 to 25.11. 
- The 4H chart shows a rising wedge. 
- This wedge was broken at the end of last week's trading. 
- Note that price is back below the 200-, 100-, and 50-period simple moving averages (SMAs). This reflects maintenance of the bearish bias. 
- The 4H RSI never made it to 70, which suggests a lack of bullish momentum.
- In other words, bears are still in charge and the 18.55 low could be revisited in August, with the prospect of a new low on the year.