Biotech breakout … Will it hold?

As with natural gas, UNG discussed here, IBB is also at a danger point.

Price action penetrated resistance and closed above that resistance; giving the appearance of strength.

The chart shows Fibonacci time correlations.  Biotech, IBB appears to have form and time structure.

To use Wyckoff parlance, IBB is in an up-thrust; a potential reversal condition.

It’s true that a weekly time correlation appears to be in effect as well; At least at this juncture.  However, it’s price action itself that’s the final arbiter.

If there’s a retrace below support, then a test (form the underside), we’ve got a good indication of reversal

Charts by StockCharts

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