Biotech Stamina?  

The biotech space via the XLI is now 6% off the most recent 52-week highs after a quick spurt above the very round par number. Often that is where selling pressure will abate after an instrument has hit an annual peak. The daily chart below shows the fund is still above the recent cup base breakout and the 50-day SMA is catching up in PRICE. Another look here is how the 21-day EMA may be support here as it was between mid-January and early February, and notice how the Bollinger Bands are starting to contract (see how PRICE witnessed a robust move after the tautened in early February. To balance out the healthy sentiment the WEEKLY chart here shows the rejection at the 50 WEEK SMA and the bearish dark cloud cover candle last week which both took place in the area of the 100 area, where things will often at the very least take a pause. One positive that can be taken away from the WEEKLY timeframe however is the bounce off this mid-90s area, which was resistance in both early and mid-2022. I am still constructive on the XBI as long as it maintains ground above 90.

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