XBI trade ideas
Biotech Breakdown? $XBIHere we are looking at AMEX:XBI I am looking at an hourly chart with a renko chart on the ATR setting just to keep it simple. A huge wedge has been developing on XBI for awhile now and we have made a breakdown on the bottom trendline. We are currently at a line in the sand on XBI and either the bulls can hold it up or we really breakdown on this final support and make our way down to the low of last year. The final support zone is at $74.50 to roughly $73.00. If we break below $73 I would look out below as there could be a big unraveling as this pattern has been developing for awhile now. The technical price target witch is the width of the wedge at the point of the breakdown is showing a 16% drop from where prices are now which would lead us right down to the low of last year. In my opinion this is a long term investment and not a trade I would happily DCA but I am cautiously bearish and want to get a better price. I am currently holding out whatever I have and plan to really start buying once we get into the mid $65 range.
Opening (IRA): XBI November 17th 71 Short Put... for a .77 credit.
Comments: Targeting the shortest duration <16 delta short puts paying around 1% of the strike price in credit to emulate dollar cost averaging into the biotech exchange-traded fund.
$XBI - Bounced from lower trend lineAMEX:XBI bounced from lower trend line. MCAD, RSI and William R% all curling up. It could head to $87.
Targets:
- $82
- $87
Key resistance area: $82.
Key support area: $76.
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Opening (IRA): XBI October 20th 68 Short Put... for an .82/contract credit.
Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the biotech sector.
I'm fine with getting assigned, selling call against, but mainly just selling premium in some relatively high IV sector exchange-traded funds (XBI's at 30.9%) while I wait for some of my broad market to come in.
XBI BUYThe XBI Exchange Traded Fund (ETF) is provided by SPDR. It is built to track an index: S&P Biotechnology Select Industry Index. The XBI ETF provides physical exposure, so by buying it you actually own parts of all the 140 underlying holdings.
XBI WeeklyPositive reason for XBI - relatively equal weighted @ 1% - can not know which bio is going to be a winner!
Like the 30 week moving average as an indicator.
Thesis is as rates fall Bios will be more attractive!
Supply of new drugs in big pharma is dwindling/ coming off patent and they need to replace with new drugs for revenue; so Big Parma will be looking to acquire some of the potential winners - AKA MDGL
Bearish Cypher Potential $84.50Looking at AMEX:XBI the biotech sector etf is showing some weakness. It needs to close above $85.95 to continue the uptrend, and not close below $85.60-85.58. If it does, the bearish cypher set up is showing a return to $84.50 w/ a bearish close..
Currently short AMEX:LABU
NOT TRADING OR FINANCIAL ADVICE , PLEASE DO YOUR OWN DUE DILLIGENCE
$xbi - Get me some biotech share bruhIt's almost time to go balls deep into bio tech... its going to be a big 2 years ahead of this one...
AD Ascending Triangle/Bull Flag $160 targetThe AD is showing me an Ascending Triangle/ Bull Flag breakout in biotech w/ a price target of $160 BTFD
$XBI with a nice looking base I've been wanting AMEX:XBI to drift downwards a bit and turn for a better low risk entry (add on). I think down to $86-$85.50 is potential area that could bring back buyers. This base looks nice.
bearish bat on xbi min target if close below 84 is 82.57 w/ max target of 78. we're currently near the .382 fib level 83.56 (xbi still has more room to fall).. This move is to test the previous resistances as support. same move spy made.. look at how the . 382 was previously resistances and we cleared that level. now it wants to test the support. this trade pair w/ AMEX:LABU AMEX:LABD
$XBI ETF Biotechnology Bull FlagOn 4/11/23 our Algo alert software had a buy signal, today there is a really nice bull flag forming on the AMEX:XBI ETF Biotechnology sector
$XBI - Overhead resistance at $90-96AMEX:XBI #XBI Creeping up. Overhead resistance at $90 - $96. Downside risk $80-$77. 👀
$XBI target zone if, IF, risk-off returnsOn the weekly chart, price seemed to be breaking down from a channel and then reversed course to move higher. If this is a rubberband reaction and risk-off resumes, then this monthly frame shows a 2nd leg down that could move to 62-58.
Alternatively, if risk-on stays the course to continue January's rise, then price moves up to the 20ma, 96-100 area. Watch daily chart to see if price stays over 87-88.
$XBI$XBI – Weekly vs. Monthly
Weekly (left) – new swing high after weeks of consolidation. Momentum indicators started to move higher, RSI is above 50-level; MACD is heading towards a cross above the zero line
Monthly (right) – momentum indicators stopped falling; RSI is moving higher. After falling from mid 2021, MACD appears to have completed its correction and is about to cross.
Could provide opportunities this year!
XBI Short Strangle 60 DTE NeutralBeen in a channel for quite some time now. Seems to be breaking out to the upside. Markets still choppy, so not a true direction set, especially with the earnings season coming.
IVR is actually a bit too low, but premium is still good for a .18 delta ($2.57) on a +/- $480,- margin.
Sell XBI 17mar2023 Call 100 - delta .1884
Sell XBI 17mar2023 Put 78 - delta .1877
Buy To Close @50% ($1.28)
XBI - Starting the year strong with a minor breakoutBiotech stocks have been my focus as many are showing significant relative strength and posting new 52 week highs. I got long XBI yesterday on the break of $85.
Something to consider - stocks well below their all-time highs have a lot of supply to contend with, so the probability of a smooth trend out of a base tends to be lower and raises the probability of failure. The larger degree consolidation could look like this if the selling isn't absorbed by enough buyers at resistance:
Biotechs broke out from 4 month range$XBI out from 4 month range. Individual biotech stocks have been breaking out in past few weeks, and its good to see the sector moving too. Could see a move to $95.
Big move on $XBILast couple days been good for Biotech. Big move on $XBI today.
OBV put in SIX new highs before price the last few days.
Volume often leads price.
