Will That Be The Top?

When we last left biotech XBI, a push higher into a potential stop-zone was expected, link here.

‘The tape is always right’ as they say, and price action, somewhat unexpectedly, blew past those stop levels.

At this point (12:27 p.m., EST) we’re nearing the 50% retrace on the XBI. That level is somewhere around XBI, 92.28-ish. Currently XBI is trading at 90.12, about 2-points away.

We’ll do a little experiment with the weekly chart by inverting it to show the longer-term view.

Biotech XBI, Weekly (inverted)

Note the MACD lines are still crossed to the upside.

One way to look at the action is that we’re in a test of the spring set-up (up-thrust, non-inverted).

The retrace to the 50% level may have already happened with last Friday’s action.

However, it’s just a sneaky suspicion, XBI may try to inch itself past the daily highs of April 9th, and April 11th (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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