I present the daily chart of Avanir Pharmaceuticals, below, not just as a long idea in its own right, but also to drive home the point about what type of price action we have seen in 2013. As you can see, AVNR made what looked to be a clean breakout from the light blue lines, or bullish consolidation, in July, only to immediately give back those gains.
We have seen that type of breakout action in 2013 among a number of stocks, and usually it is not a great sign to see breakouts immediately retraced, and then some. However, this year there has largely been no downside follow-through by sellers. And Avanir seems to exemplify this, as you can see the consolidation simply morphed into something large, more sideways, and ultimately more benign. The stock likely needs to clear $5.10 to set in motion a true breakout at this point. But the chart is a useful example of what we have come to expect even from seemingly failed breakouts this year.
Earnings are tomorrow after the bell.
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