LABD
DESCENDING TRIANGLE We are humans and before going forward we like to test and retest ...This time is not different and the momentum on the daily is starting it is transition into negative territoty + bearish macd crossover...
I open a long position in $labd yesterday but the drop in $xbi will not come until next week..Friday should confirm the berish trade setup and i will be ready to increment position depending on the situation...I have a very tight stop loss and everyone should manage risk/reward before buying so play safe.
$Labd
XBI weekly - Long term outlookHere's a quick look at XBI on the weekly and what I see. I'll be shorting everytime it hits the top of the trendline. I'll be shorting every divergence and overbought signals on the 60 & 240.
There's a lot of hype with the bio sector since its 2016 lows, which is exactly what a B wave does. It creates hope, only to have it taken away. This is a multi year outlook. There's no way of knowing where the wave B top will be. This corrective structure can last another 6 months, year, maybe more! We're not "there" yet for the big bio short, but 90% of the time, a setup like this (especially on a weekly chart) is super bearish. Which is why I will always take the sell at the top of the trendline moving forward. GL
Biotech RideBiotech went wild after Donald entered the white house.
It will rage for a while longer. When it hit the 75 mark, enter short with LABD.
Then ride it down to see the gap closing.
There is a risk that it will close the gap before it hits 75 - by e.g. double topping, but I find it more likely that it will now continue up to 75.
75 is the critical number for the short entry.