Monday, November 28, 2016

Did Biotechnology (XBI) Just Head-Fake Or More Pain To Come?

Sorry, but I've had a string of really ugly on-calls and haven't written as much original material as I would like, but I did previously comment on how weak Biotechnology ETF XBI was looking and how I expected a pullback to around $63.00. The problem is it appears that pullback happened in one day and XBI looks set to soar again. On the 30 minute chart it broke a key resistance area around $65.50 but now appears to be putting in a bearish rising wedge, so at least in the near term I am cautious.
On the daily charts it still looks bullish so I would buy on this pullback with stops set at $64.50, otherwise a dip below that level means more pain might be on the way.