Odds Stacked Against Biotech

March 19, 2024 By in $SPSIBI, Biotech, Federal Reserve, Interest Rates, LABD, SPBIO, XBI 4 Comments

Below Resistance & Trendline Break

Tomorrow’s the Fed interest rate announcement; anything can happen.

The way it stands now for biotech XBI (the day prior), an upside rally is against the odds.

The chart below for the sector is a busy one.

Biotech XBI, 3-Day

Price action’s below resistance (possible false breakout), has broken an upside trend to the downside (grey dashed line) and today, has come back for a test of both.

Breaking below resistance was accompanied by increased volume; bearish.

A significant amount of demand will need to show, to get this market back to the bullish side (not advice, not a recommendation).

The Fed interest rate announcement is scheduled for Wednesday, 2:00 p.m., EST.

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

4 responses

  1. Awesome work on XBI. David W. speaks the same about probabilities and trying to stack them in your favor and then taking a trade. Have an awesome day!!
    Richie

    Liked by 1 person

  2. Richie,

    Thank you for the compliment.

    It seems we’re still early in this move (if it’s a sustainable reversal) and anything can happen.

    Even so, you have probably already discovered that XBI has formed at least one trendline and possibly a trading channel.

    If it continues the reversal lower, two projections are planned: one a ‘measured move’ and one a P&F chart.

    Regards,

    Paul

    Like

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