Saturday, November 07, 2015

Next Week Rolling Over? Biotechnology ($BTK), Natural Gas ($NATGAS) and Oil ($XOI)

I commented this earlier week about how ominous the biotechnology index ($BTK) looks at the moment, and right now it appears like the final shoulder has gone in. We had a brief test of the EMA(34) on Friday but it closed back inside our ascending bearish wedge. Even the RSI and Stochastics look to be crossing over. Investors can take advantage of any fall in the biotechnology sector by using LABD or BIS. I expect a breakdown next week and I've listed biotechnology as a strong short/sell.
Months and months ago I thought natural gas could fall to $2.40 and it fell even further than that! Curiously this week a buy signal appeared on the RSI(5). Furthermore, the full stochastics have made a bullish crossover so I think natural gas deserves some attention next week. I've drawn in a diagonal resistance line made by the series of lower highs from August, September, and October. Resistance here is at $2.50 but natural gas is looking like a speculative long/buy here.
Earlier on Tuesday I also mentioned the bearish rising wedge in the Oil Index ($XOI) where this past week resistance was found at the MA(144). We are still in the rising wedge but stochastics and momentum indicators are showing downward pressure. I think oil is a strong short/sell.