After reporting solid earnings and revenue, Actavis gapped up, and in the following days traded down a percent or two. Like Nike, which I previously wrote about, Actavis has formed a bull flag, filling its gap in preparation for its next leg higher.
Moreover, after I ran a Fibionacci on the chart of ACT, I noticed that it is holding the ratios very well. Take a look at the picture below.
If ACT can retrace past its 61.8% ratio, I see the stock going to $317 with no problem, and then shortly thereafter going to $332.
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