Friday, October 21, 2016

Bullish Engulfing Pattern In Biotechnology (XBI)

I actually put this arrow in last night on the Biotechnology ETF XBI but things are looking overextended and some of my shorter-term indicators were bullishly aligning. The other reason I thought things were going to take a turn upwards was because of how perfectly it stopped at a long term support line just below $59.00. In addition to all this there is divergence on the RSI(5) with a lower high being put in. Please be aware of the fact that this is no way presaging some grand resurgence in biotechnology as the overall trend seems to be down but it does seem like this is a bounce that people could take advantage of.