Valeant Pharmaceuticals (VRX) had a rough year in 2016, but could be stabilizing. VRX Daily Chart 2/20(click to enlarge)Double Bottom Neckline:- The daily chart shows that price bounced off the 13.00 handle in December, and then again in January. - Price is approaching the earlier resistance around 17.50. - This would be the "neckline" of the current double bottom.- The resistance area however extends to 18.50, so we should look fro a break above 18.50 for a bullish sign.Selling at Resistance:- On the other hand, if we respect the prevailing downtrend, we can consider selling in this 17.50-18.50 area. - I think we can get something around a 2:1 reward to risk if we enter around 18.00 with a stop at 19.50 and a target of 15.00. - With the prevailing trend being bearish, the probability of price continuing to 14.00 or 13.00 is good enough to keep a small position even if price does hit the 15.00 price target.- So, the reward to risk is higher than 2:1 if we enter at 18.00 with a stop at 19.50.