XBI trade ideas
XBI perfect rejection of daily downtrend lineXBI maintained it's daily higher low by a small margin on Thursday which provided a great bottom fishing play as SPY hourly was very oversold. Daily downtrend line provided a perfect LABU exit, and now waiting for a break of 88.65 and even more key 89.16 to enter a long swing (if SPY breaks bullish with it), or a break down of 85.06 for a short swing - if SPY breaks bearish with it.
Potential Continuation Pattern XBIBacktesting the breakout zone giving a high probability bounce here
Biotech is looking weakThe %R on the weekly candle here is showing signs that momentum is shifting down as the RSI still has room to move down. Notice the last time XBI bottomed was with the RSI, not %R. The %R has acted as a bottom over the last 2 years in this channel. However, now that the channel has broken down, the status quo has changed.
Bullish SharkBullish Shark with bullish divergence, and price is bouncing off of a significant trendline.
13% down on XBI, 40% upside on LabDNice double top, retrace to the bottom of the channel, potential full breakdown depending on the broader market over the next month.
Expect strengthLately we've been seeing out performance vs SPX in tech XLK, financials XLF and consumer discretionary XLY. I think we have no reason not to expect strength in XBI biotech to pick up some steam in the weeks to come.
BioTech Stocks look to be making a serious recoveryAfter what looked like the beginning of an equity bear-market to some, Biotech stocks seem to be setting up for more bullish momentum.
XBI Trades perfectly in this channelNice test of upside resistance. Gap fill below before eventual breakout to the upside?
