Looking at The Inside

Yesterday’s update showed biotech sector IBB, in a bearish divergence.

The list of components can be found here.

For today, we’ll look at some of the technical characteristics pointing to potential for a downside reversal (not advice, not a recommendation).

Biotech IBB, Weekly

A wedge typically occurs at the end of a move, whether up or down (not advice, not a recommendation).

Price action has met the ‘measured move’ target and even gone slightly above.

The potential bearish MACD is shown.

If the coming week is flat or down, we’ll (likely) have a tick lower in MACD, completing the divergence signal.

Fo the next update, we’ll discuss a much larger ‘terminating’ wedge and more.

Stay Tuned

Charts by StockCharts, TC2000

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