9:06 a.m. EST:
Each retrace higher in biotech (IBB) has a lower top.
Right now, risk has been squeezed down to the hash-marked area on the chart.
It’s the distance between 153.84 and 153.15, just 0.69-points.
A push past the previous retrace high of 153.84, means IBB is now sub-dividing higher; exiting the current short position is warranted (not advice, not a recommendation).
Pre-market action has IBB trading higher but below the last session high.
This juncture, 0.69-points from subdividing higher or reversal, is a low risk area; the distance from exiting or maintaining short is narrow.
The daily chart below has price action with Fibonacci projections.
Yesterday, IBB touched and reversed from the 50% projected level … thus giving it some amount of validation.
As sated in previous updates (from empirical observation), if price action gets to the 50% level, it tends to continue on to at least a 61.8%.
We’ll see if that’s the case here.
Fundamentals and News:
Fundamentally, the wheels continue to fall off the narrative.
Yet again, we have posts like this showing the devastation of experimental gene ‘therapy’.
Here’s another horror show.
Positioning:
The ‘Project’ remains short the sector via LABD (not advice, not a recommendation). The stop may have been moved up too quickly (a possible error), so we’ll see what happens with early action.
Summary:
We’re at the edge where IBB either posts higher and continues with a bull move or it stalls and reverses.
Stay Tuned
Charts by StockCharts
The Danger Point® 