Allergan

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Allergan ( AGN) is a multi-specialty health care company develops and commercializes innovative pharmaceuticals, biologics and medical devices. This stock closed up 1.8% to $86.81 on Wednesday.

Wednesday's Volume: 5.14 million
Average Volume: 2.56 million
Volume % Change: 132%

Shares of AGN trended slightly higher today despite the fact that Wells Fargo downgraded the stock to market perform from outperform.

>>3 Health Care Stocks Trending Higher

From a technical perspective, AGN bounced modestly higher here right off of $85 with above-average volume. This stock has been downtrending badly for the last few weeks, with shares plunging lower from its high of $102.94 to its recent low of $81.33. During that downtrend, shares of AGN have been consistently making lower highs and lower lows, which is bearish technical price action. That move also pushed shares of AGN into oversold territory, since its relative strength index reading dipped well below 30. Oversold can always get move oversold, but shares of AGN have started to rebound and move within range of triggering a near-term breakout trade. That trade will hit if AGN manages to take out its recent gap down day high of $88.24 with high volume.

Traders should now look for long-biased trades in AGN as long as it's trending above $85 and then once it sustains a move or close above its gap down day high of $88.24 with volume that hits near or above 2.56 million shares. If that breakout triggers soon, then AGN will set up to re-fill some of its previous gap down zone that started near $95. Any high-volume move above $95 will then give AGN a chance to re-test or possibly take out its 200-day moving average at $99.99.

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

-- Written by Roberto Pedone in Madison, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Madison, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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