[isatrader]

Allergan (AGN) was said to be consolidating beneath final resistance at 90, and it was recommended as a breakout buy (on a closing basis) above 90. The Trader Stop Loss was given as 85.99 and the Investor Stop Loss was given as 82.99

Trader stop - on the daily chart the last pivot low was 86.45, which had been tested twice in a four day period the previous week, and then had rallied off from it, and was testing the top of the range just below 90. So the suggested stop loss was below the pivot lows, and had been placed below the whole number also.

Investor stop - 82.99 was the recommended level, which below the last notable swing low on the weekly chart of 84.30. The 30 week MA was at 83.86 and so I would have expected it to go below the half point at 83.49, but the 200 day MA may have been considered also which was at 83.20, but I'm still not clear if the 200 day MA is used or not when considering the stop position. But I can't see any other reason for going that far below the 30 week MA on the chart.

ATR distance to stops - For AGN the ATR(200) was 1.564 at the time of the recommendation and so:

• 2.56% ATR - Trader stop distance
  
• 4.48% ATR - Investor stop distance
  

Other observations - AGN also had below average volume for the most part; relative performance versus the S&P 500 was just positive on the weekly, but had been weakening for around six months; and the 30 week MA had just turned up. It had been in a fairly tight range for around four months, but was still moving gradually higher.