Biotech In Position

Biotech (IBB) is now in position to move higher as a test of the trend break from Monday, the 19th.

The chart shows IBB has retraced 68% of the move from the September 4th low, to the October 14th high.

That’s a deep pull-back and suggests weakness. 

However, after a trend-line break, it’s typical market behavior to mount some kind of rally to test the break.

If that happens, part of the test could be a new high. 

We already have a weekly MACD divergence (possible). If the test occurs soon enough, there could be a daily divergence as well.

Weekly and Daily bearish divergences. We’ll see.

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.
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