Wednesday, February 15, 2017

Safe Bet To Watch Biotechnology (XBI) Retrace And Just Buy The Dip

I made a brilliant "long/buy" call for Biotechnology ETF XBI about two weeks ago and it has since powered on to a critical resistance point, $69.00. This is the previous high from back in October I think is going to present a bit of a challenge because the way things stand from a technical standpoint, things are quite overbought. I do believe this will eventually climb above $69.00, but not after some retracement to about $66.00 or slightly above. If you didn't take advantage of the previous call I do believe another buying opportunity will come (a "buy the dip" scenario) so please don't fret. This plan however is aborted if it manages to break above $69.00 which will then become our new support. Otherwise what seems to be playing out here is an ascending triangle pattern.