Saturday, January 30, 2016

Did a 'buy' signal just go in for Biotechnology?

During this small relief rally we've been having lately, several people have noticed that Biotechnology ($BTK) hasn't been playing along. Prices continued to seem depressed while oil and energy (the other downtrodden sector in the market currently) had a rally. Wednesday/Thursday $BTK saw the equity break it's neckline at around 2950 with the possibility of a further fall with the strong possibility of an imminent collapse. However Friday saw a strong bounce back with a higher low appearing on the RSI (5). Could this be a 'buy' signal? Several indicators are oversold such as the stochastics with MACD strongly negative at this point, so the timing at this point seems appropriate.
On the weekly chart $BTK seems to have come into contact with the support line for a downward channel set up by lows back in April and October.

No comments:

Post a Comment