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.
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.
We’re at the edge where IBB either posts higher and continues with a bull move or it stalls and reverses.
Charts by StockCharts