Penetrates Support & Stops

The pre-market update had biotech XBI, at its Fibonacci projected move, ready to continue lower.

Indeed, there was a gap-lower open and price action attempted to move lower (below support), but then it stopped, closing the day with a narrow bar.

Anyone who’s a student of Wyckoff, would immediately recognize that description; we’re in spring position.

So, is XBI going to launch higher?

Well, anything can happen.

However, maybe a better description of potential, is that XBI, is in position to attempt to move higher.

Biotech XBI, Daily

Note: Elder’s Force Index for the past two trading days has lost downside energy (middle indicator panel).

This gives some probability of an attempted upside move (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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