Running The Stops

It looks like we’re in a squeeze with price action screaming higher.

As shown in the last update, the LABD hard stop was @ 16.79 (not advice, not a recommendation).

With that said, the entire short position was exited at 16.7501, early in the session.

Overall gain was around 3.96%

With the housekeeping out of the way, let’s move on to the chart and see where price action’s likely to head next.

Biotech SPBIO, Daily

We’ll get right to the point and show the most likely area to clear out stops and potentially set up for the next reversal.

The moving averages have been left in the chart (not a usual practice) because that’s the focus of the crowd.

In their minds, a close above the 200-Day MA, would be bullish.

If that happens, from a Wyckoff standpoint, we could be in up-thrust (reversal) position.

Fibonacci Time

Also of note: When a Fibonacci sequence becomes obvious, that’s when it tends to fall apart or morph into some other type of sequence.

That may be happening now.

Strategy

As always, price action can and will do whatever is necessary to extract as much from both sides (bull, bear) as possible.

It may contact the 200-MA or not. It all depends on where the most stop oerders are hiding.

Slightly above the recent highs looks like a good area for those stops.

Stay Tuned

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