Wednesday, November 23, 2016

Biotechnology (XBI) Looking Weak, But Inverse Head And Shoulders Developing?

I just wanted to post this before heading off to the hospital for work but Biotechnology ETF XBI is looking limp and lifeless, especially after yesterday's rout. My indicators haven't crossed over yet but the change in direction has been made so I expect the bearish scenario to emerge sooner or later. What's interesting is that a possible inverse head and shoulders pattern has appeared, although I'm never good at spotting these. Longer term support then would be around $59.00 to $60.00 and nearer term I think support at $62.00. Just below $62.00 is a huge gap so if the bulls are in charge this should be support.