Readers will recall earlier in the week my expectation of a bounce in biotechnology stocks which has since materialized and quite profitably for those who were able to take advantage. Please remember that Janet Yellen had previously said that biotechnology was a little over-subscribed and inflated price-wise so naturally it made an excellent target for short-selling when the market decline began, but, during periods of decline high volatility bounces are expected which can also be lucrative when timed properly. To aide with timing an online colleague recommended $BTK instead of IBB for watching biotechnology and I'd have to agree. The twin shoulder and head pattern is still apparent however the neckline and troughs are much more clear and provide a much better picture of what is happening. The most recent bottom came in perfectly inline with the troughs created previously by the left-shoulders.
strong speculative long/buy intended for aggressive traders only.
The full stochastic indicators (5 and 14) on the daily charts are poised to cross over bullishly so we can expect the final shoulder to go in over the next over the next five weeks with about four weeks for the ascent. If the past is any guide we should see ascending bearish wedges develop as was apparent in the last three shoulders.