It gapped down in the past because they dropped one of their studies but the company has many other products in development. There are messages that the float has been bought up and funds and insiders are buying heavily for some event.
I would consider this a form of divergence, the price really got sold off while the KST oscillator remained positive and its average value actually increased, while maintaining an all time high. My thinking is that the chart is going to bounce right back up.
Due to worse than expected ER, and lowered guidance, and top of all failed $AGN acquisition, it is very possible that $VRX is going to $90-$100 price level. Company is not profitable and even if their international profits rise (mostly Russia and Europe), there are problems in creating sustainable growth.
Boy, does VRX have shtty fundamental, but interesting technicals. I used to hate geometry when I was in high school, but it looks like it finally paid off. I used dotted line to visualize the way that VRX could've gone if the Allergan deal doesn't exist. VRX rallied 1000% in the last 4 years, the Allergan deal is like a life support machine for Valeant right...
After it gapped up on earnings to new highs it filled gap and sold off agressively. Now it consolidates near lows means that buyers dont have enough power. Below all key moving averages. Buyers failed above $97 and I think it is good short opportunity with stops above swing high at $104. I will add through lows at $84 with target $70 which is important level of support.