Posting A Slight New High … And Then?

Is biotech price action nerve-wracking indecision, or just the normal process of clearing out weak hands?

First, The Housekeeping:

Short trade, LABD-23-13 stopped out @ LABD 18.40 (not advice, not a recommendation).

Trade was re-opened as LABD-23-14, with entry @ LABD 18.28, Hard Stop @ the session low, currently LABD 17.61 (not advice, not a recommendation).

Did we just have a double bottom?

Biotech 3X Leveraged Inverse Fund LABD, Hourly

This is how it looks as of 12:00 p.m., EST.

Right now, LABD is hanging slightly below the trading range (blue lines).

If price action manages to re-enter that range, it adds weight to a sustained reversal case.

Positioning

As noted, a new short position was opened at a lower LABD entry; LABD-23-14.

If we get continued downside action in LABD during this session (upside in XBI, SPBIO, $SPSIBI), then a discretionary exit could be made regardless of stop location (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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