12:57 p.m., EST
‘Breakout or Set-Up’ has been resolved
Biotech IBB, posts new daily low.
Going back a few days, we had the chart above:
Price action then stalled, retraced, penetrated support (blue line).
Yesterday, it edged higher in a low-volume test. Today, it reversed again and has just now, posted a new daily low.
It’s high probability the set-up is complete:
The expectation is for biotech IBB (and SPBIO) to decline from here.
Several times in these updates the word ‘collapse’ has been used to describe the potential for biotech.
The monthly chart below shows a Fibonacci projection based off current price action.
Note how projected levels match up with support and resistance areas:
Obvioulsy, this is a long term projection.
It may work out the short position in biotech via LABD, (not advice not a recommendation) will have to be exited and re-entered several or many times if/when the sector heads for the bottom.
The hourly chart of IBB below, shows Wednesday’s price action touching, then bouncing off the first Fibonacci projection.
Charts by StockCharts
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