Just Two of Many Possible Scenarios

Looking at where biotech (XBI) closed this past Friday, two potential outcomes are possible for the week(s) ahead.

Based on typical price action, when an extended move encounters resistance (shown as the blue line), we have the following (not advice, not a recommendation).

Biotech XBI, Daily Close Forecast

The analysis shows XBI, is currently at resistance.

Typical market behavior is to come back for a test of the support level shown as magenta dashed lines.

What happens after that in the above case, is either continued upside or a potential failure and breakdown.

Stay Tuned

Charts by StockCharts

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