XBI - Oversold Biotech Sector down ~50%

Lower can always can go lower, and I do believe XBI will hit 75-85 in the upcoming days/weeks. That being said,
- Last 3 times W RSI hit oversold, it provided an excellent entry opportunity.
- Hidden Weekly Bullish Divergence
- Volume climaxing could suggest a reversal as it did the previous 3 times.

What I'm looking for:
- VPVR/cluster of fibs at 75-85 holds
- Regular Bullish Divergence on lower TF's
- Reversal candlestick pattern
- SPX not to shit itself

Note

Tagged the weekly VPVR at $85. Weekly Hidden Bullish Divergence still intact. Monthly RSI is the lowest it's ever been at 37.5. Very probable there is one final flush out to the 1.618 fib at $75 before a strong bounce/reversal. Monthly candle looks very spooky

Note

Retesting previous resistance fibs as support. Needs to hold for small cap biotechs to fly

Note

SPX has to hold the 200 DMA here. Strong rejection off the .618 could imply there's another wave down for XBI

Note

XBI holding and flipping 20 DMA into support. Also, SPX has held its 200 DMA. I would have liked to see a daily close above the 1 Fib level at 95.71 today but whatever. Let's see if this can get some follow through the rest of the week.

CrashWhen

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CrashWhen