Day by Day, Inching Higher

It’s been over two months, since this post.

As the chart shows, biotech XBI, has made it all the way back, to the (blue line) resistance area.

However, it has not pushed above that area to create an up-thrust (reversal) condition.

Richie Naso, on Algorithms

Mr. Naso gives us a brief (technical) three-minute detail on why we should expect XBI, to penetrate the resistance area, link here.

He’s describing false moves (Wyckoff springs and up-thrusts) that trap the inexperienced and unsuspecting; it’s what markets do.

Biotech XBI, Daily

Notice the ‘choppy’ action.

It’s as if XBI, is looking for some kind of resolution, like maybe, a false breakout.

There’s no guarantee we’ll get above resistance. If it happens, there’s no guarantee it’s a false breakout.

However, as Naso says, the ‘probability’ of a false breakout, is (in his words) ‘above 80%’ (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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