New Daily Low

With biotech XBI, posting a new daily low, we have a stop for LABD-24-21 (not advice, not a recommendation).

Adding to that, after attempting to identify several trendlines, it looks like one is (finally) being confirmed.

Objective

Stated in prior updates, this move has the potential of lasting longer than anyone would reasonably expect.

It literally took years, to set-up. However, that’s absolutely no guarantee.

Let’s add to that, forces are at work (think, RFK, Jr. et. al.) that may provide a backdrop for sustained pressure (not advice, not a recommendation).

Biotech XBI, Daily

As always with the markets, there are simultaneous (up/down) actions.

In one chart, we can see why trading (successfully) is so difficult.

We’re in a (potential) down channel while at the same time, we’re in a spring condition (upward pressure).

From prior analysis at the higher timeframe (weekly), the expectation is for the ‘spring’ action to fail (not advice, not a recommendation).

If it doesn’t, the stop will be hit and the trade exited (not advice, not a 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