Biotech: By the Book

If during a reversal, price action comes back on contracting volume, the reversal has been tested.

Biotech, IBB has done just that.  It’s a near textbook example. 

Today was upward action. An exact Fibonacci 61.8%, retrace of the three-day move with volume contracting over 41% from the prior session. 

Under such conditions, there’s high probability of an immediate resumption of the reversal trend.

We’ll see if biotech (IBB) resumes the downward reversal at the next session; Tomorrow, Friday.

Market positions remain unchanged (not advice, not a recommendation) and shown below

Managed Accounts

Detail              Position         Stop

Short GDX     DUST             20.44

Short IBB       BIS                  25.46

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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