When Everything Lines Up
Perfectly Imperfect.
The insert at left, is a picture of the Romanesco Italia Broccoli.
Is it perfect, imperfect, or perfectly imperfect?
When looking at the current biotech chart (below), the same question may be asked.
At this point, Fibonacci correlations are perfect. The counts, the retrace, the channel widths.
The imperfect part is, where the count started.
It was not at the ‘print’ top, the ‘closing’ top, but at the location where there was a ‘change of character‘.
Not In Any Book
There are many books covering Fibonacci; the retrace levels, projections, counting from highs to lows, and so on.
However, I have not (personally) seen in any book, starting a count that was not at the top or bottom of a move.
So, what else could the biotech sector (XBI) be doing this morning, that’s not covered in any book?
Biotech XBI, Daily
First off, let’s not forget why this sector may be down from its highs (February, 2021), as much as it is. This link may help as a reminder.
As the chart implies, the question for the day, or days ahead is, ‘will today’s opening gap-lower, be filled?’
The market itself has shown, at times, it will fill the gap and at other times, will not.
At this juncture (11:20 a.m., EST), XBI has penetrated the prior daily low (of 4/19) and has set up the condition of potential (minor) spring.
Price action’s rising as of this post but appears to be struggling on its way higher.
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