Wednesday, June 08, 2016

Biotechnology (XBI): Weak Sell Signal Put In

Biotechnology's (XBI) trend of the last few months has been quite puzzling. Last half of 2015 it took a general beating (in contrast to the general market) and also in contrast to the general market since the start of the year it has been ascending gently. I haven't decided if this is an ascending wedge but it is currently coming up on a resistance line in place since January. Coincidentally a weak RSI(5) sell signal has been put in with Stochastics bearishly crossing over. At the very least support should be at the EMA(34) and with that maybe a proper wedge may go in. Please have a tight stop at around $60.00 because the market is paradoxically bullish and XBI may break away with it.
Overcoming the $60.00 would be a huge "buy" signal, by the way. Serious resistance was put in back in mid-August and repeatedly in October with intermediate lows. Surpassing this level would signal a brand new leg-up