Sanity, Amidst Chaos

Biotech About To Go ‘Up-Thrust’

With about three-minutes to go before the close, the stop was hit at LABD: 20.90.

Short position LABD-22-06, is closed (not advice, not a recommendation).

The ‘timing‘ analysis was overridden by the market about mid-session; there’s obviously something at work on a longer timeframe.

We’ll look at what that might be with the 4-Hour chart of biotech SPBIO.

SPBIO, 4-Hour Candle

The chart shows price action pushing past the 38% level just before the close.

Unless there’s a major gap lower at tomorrow’s open, the stage is set for SPBIO, to push on higher to the 50%, retrace.

However, another set-up could be in the works.

We’re going back to our usual trick of taking the above chart an inverting it to show what inverse fund LABD would look like with no tracking errors.

SPBIO, 4-Hour Candle (Inverted)

Now we see what may be happening.

A decisive push below support, puts the inverted chart (i.e., LABD) in ‘spring’ position.

Conversely, SPBIO, would be in ‘up-thrust’ condition at the same time.

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

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