Biotech Blues:

Is the flashy group within healthcare hated enough now that it could be ready to rally? Of course, no one knows the answer and one should let PRICE alone dictate that, but the XBI could be setting up a decent risk/reward situation with a very tight stop. Last week the stock was up almost 5% at one point ignoring the overall market fragility. The ETF is now 46% off most recent 52 week highs, not a typo, and it has advanced just 4 weeks thus far in 2022, and 3 of the 4 CLOSED bearishly in the lower half of the WEEKLY range. The lone positive week ending 2/25 rose fractionally, but about 10% off intraweek lows recording a bullish WEEKLY hammer candle. It is now below the intraweek lows of that week and is now near the round 80 number. If it can hold in this area it would find support within a bullish falling wedge pattern. Use a tight stop of 79, as this fund has disappointed the masses time and time and again. That is probably the best thing one can say the XBI has going for it. I prefer to play individual names and we detail a few later in this post.

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