Allergan PLC (NYSE: AGN)

Allergan plc develops, manufactures, and distributes generic, branded, biosimilar, and over-the-counter (OTC) pharmaceutical products. It operates in three segments: North American Brands, North American Generics and International, and Anda Distribution. The North American Brands segment provides patented and off-patent trademarked pharmaceutical products primarily under the Dalvance, Bystolic, Canasa, Carafate, Daliresp, Fetzima, Linzess, Namenda, Namenda XR, Saphris, Teflaro, Viibryd, Actonel, Asacol HD, Atelvia, Delzicol, Doryx, Estrace Cream, Enablex, Lo Loestrin Fe, and Minastrin 24 Fe brands. The North American Generics and International segment develops, manufactures, and sells generic, branded generic, and OTC pharmaceutical products. The Anda Distribution segment distributes generic and brand pharmaceutical products primarily to independent pharmacies, pharmacy chains and buying groups, and physician’s offices.
Take a look at the 1-year chart of Allergen (NYSE: AGN) with the added notations:

AGN rallied over 60 percent from its October low. After peaking at $340, the stock started a decline that now has the stock trading below its key level of $280 (blue). AGN is now undergoing a rally that will most likely bring the stock back up to that $280 level.

The Tale of the Tape: AGN broke a key level of support at $280. A trader could enter a short position on any rallies up to or near $280 with a stop placed above the level. If the stock were to break back above the $280 level, a long position might be entered instead.