Allergan ( AGN) has been in a solid uptrend since back in September 2011, when the broad market was selling off. Since then, shares have rallied more than 31% as the stock has bounced up the uptrending channel. A bounce last week points to even more upside in 2012.

The fact that Allergan has been trading in a well-defined channel since September makes this stock especially tradable -- after all, we've got target support and resistance levels both to the upside and the downside. The fact that Allergan has bounced off of trendline support no fewer than five times over that stretch also tells us that this stock can consistently catch a bid at support. The 200-day moving average has acted as a good proxy for support over the course of the uptrend - it's a logical place to put a protective stop.

With AGN bouncing off of support this week, now's a good time to be a buyer. Risk-averse traders should aim to exit the position well before AGN approaches trendline resistance.

Allergan was included on a list of 7 Stocks Set to Surpass $10 in 2012.

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