Allergan (AGN) - Get Report has been tracing out a healthy pullback for the last five weeks. By Wednesday of last week, the stock had fallen more than 7% from its February high as it tested the 50-day moving average for the first time this year. AGN has rebounded nicely since then and may be in the early stages of a fresh rally leg.

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Allergan began the second leg of its powerful post-election rally with a breakout move on Feb. 1. The stock gained more than 4.75% that day and finished the session above its 200-day moving average for the first time since January 2016. AGN extended the breakout another $20 higher before running out of steam on Feb. 9. A week later, as the stock entered extremely overbought territory, it was clear a consolidation would be needed before further upside. This healthy process drove shares back down to a solid support zone.

It now appears AGN has put in a near-term low after testing the top band of a key support zone between $234.00 and $230.00. This important area is marked by the 50-day moving average near the upper band and the 200-day moving average near the lower band. Investors should take a more positive view of the stock as it continues to improve above this zone. 

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