Putting It In Perspective
Biotech (SPBIO) is still well off the highs and in bear market (below 20%) territory.
We’re going to take the last section of the chart, highlighted below and expand it out to hourly.
Hourly detail is below:
There was a minor penetration of support yesterday, the 6th; that has resulted in a spring condition upward move.
Now, we’re at the Fibonacci 23.6%, retrace of the down-move that started on September 2nd.
Looking at the hourly, it’s clear just a little farther up and we’ll penetrate minor resistance (which is also the 23.6%, retrace). Doing so, would put price action in the all too familiar and well documented ‘spring to up-thrust’ condition.
At mid-session, with SPBIO retreating (slightly) from the highs, it may not make it to up-thrust, today.
However, one still needs to be aware of the possibility.
As my firm is positioned short this sector (not advice, not a recommendation), being in the red for the day is never fun.
However, at this juncture, the charts themselves say there’s nothing untoward about maintaining short.
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.