Biotech Fails To Move Higher

Most important of all in trading, are the failed moves.

Failed moves offer the potential for low-risk entry.

What originally appeared to be a strong launch higher that may have taken SPBIO to a 50% retrace, failed at 38%.

The sector closed up for the day but far below its session high.

Biotech SPBIO, Daily

Price action closed well below the resistance area.

Zoom version below shows slight new daily high (mini-up-thrust) before retracing lower.

The technical details of what is going in will be covered over the weekend.

However, from a positioning standpoint, the short was re-established (via LABD) as it was obvious the move higher was failing (not advice, not a recommendation).

The new short position is labeled LABD-22-06, with an initial entry of LABD, 22.12.

More details to follow.

Stay Tuned

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.

The Danger Point®, trade mark: No. 6,505,279