Valeant Pharma Rallies The Day After Ackman Touts The Issue On CNBC

Valeant Pharma Inc. VRX shares are trading higher by $3.30 at $35.95 in Tuesday's session. One day after Bill Ackman of Pershing Square explained his bullish thesis on the issue via CNBC, the issue is staging a rally. Following a higher, it retreated and found support just below Monday's close ($32.65), reaching $32,25 before staging a rebound. The ensuing rally has found resistance in a familiar area. Since putting in the low for the recent down move on April 4 at $25.27, the issue has made several attempts to clear out the major resistance at the $38 area. Four days after making the panic-induced low, it staged as sharp rally that ended at $38.18. Once again, on April 25, it is attempted to break out to the upside, but the rally stalled at $37.90. In today's session, it cleared both of those hurdles and made it to $38.50, bringing in the momentum traders looking for a move to $40 and beyond. However, the rallied has failed again and these traders are being forced to quickly exit on weakness. Roberto Pedone of Zero-Sum Trading commented on the day's trading action. "Haven't seen any monster blocks on it, but volume overall is over 47 million, which is way above the 3-month average of 26.7 million. So this is getting some serious institutional flow today. "