Right On Schedule

Biotech XBI, meets target: Check

Biotech XBI, Fibonacci Day 8: Check

Biotech XBI, 50% Fib Retrace: Check

Biotech Fib 1-to-1 Projection: Check

Biotech XBI, New Daily Low: Check

Biotech about to ‘Hit the fan’: Check 🙂

Well, obviously the last bullet item is ‘not advice, not a recommendation’.

However, one can’t deny that all of the above bullet items (save the last) concerning price action have been met.

Fibonacci Retrace & Projection

Moving on to the chart, we have the XBI daily, with two Fibonacci overlays.

The first, is the typical retrace from high to lows; the second is a projection from the ‘a-b-c’ correction (a-b-c, labels not shown).

Biotech XBI, Daily with Fibonacci

Admittedly, it’s a busy chart.

The attempt here, is to show a ‘confluence of events’.

We’re meeting Fibonacci time sequence and two Fibonacci price action levels, simultaneously.

Obviously, that does not guarantee anything.

What is does do, is show we’re at a point where probabilities have lined up for a reversal (not advice, not a recommendation).

Positioning

As can be inferred from the sidebar a short has been opened: LABD-24-17, with stop level tentatively set at the LABD daily low for the session (not advice, not recommendation).

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