Biotech Channel

10:19 a.m. EST

Biotech’s on track for a sustained decline

Inverse fund LABD, major upside potential

It’s possible, after ‘Day 55’, LABD (above) attempted to negate the uptrend (pushing out of the right side) … only to find itself a few days later back in the channel.

Looking at the big picture, could or will LABD reach the upper channel line?

Is that possible?

After the experience with oil futures going negative (last year) the first time in market history, it should be obvious, anything can happen.

If LABD’s in the trading channel shown, we’re still in the early stages of the move.

Today, the expectation is for price action to reverse; coming back to close (or test) near the trend line around 23.90 – 24.30.

If it does and then gaps higher tomorrow (Friday), thus confirming the trend, it’s potentially the last stop for low risk positioning (not advice, not a recommendation).

Otherwise, with LABD up 7%, as of this post, we could already be off to the races.

The ‘project’ account is unchanged:

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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