Test of Reversal

Yesterday tested the reversal from Monday’s false breakout.

David Weis used to call such action a ‘gut-check’ to see if you could hang on to your (short) position.

Even so, today could be the more important day.

The question is: Will biotech XBI, post a new daily low, confirming the test or levitate on the next (perceived) health ‘crisis‘.

Biotech XBI, Daily

It’s about fifteen-minutes before the regular open. XBI, is trading lower, giving us a hint, yesterday completed the test (not advice, not a recommendation).

If we get a new daily low, it’s possible there’s a trading channel with pivot point at Fibonacci 21-Days.

Positioning

The side bar shows an active short: LABD-25-03.

As a result of yesterday’s action, the stop on that trade has been moved higher to LABD 7.58 (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