Biotech Coiling:

Biotech via the XBI is now 12% off its most recent 52-week highs and this week headed into Friday is off 2%. There is something for both bulls and bears and the former could state that the ETF has advanced 8 of the last 10 weeks, but the negatives would be the fund CLOSING in the lower half of the WEEKLY range 6 of the last 8 weeks. We have spoken about the importance on the WEEKLY chart of the very round 90 number, as the level was former stern resistance, and it could be turning into decent support here if Friday can finish above it. Give it credit for the nice run since the bullish morning-star pattern since the week ending 5/3 which jumped 8%. Follow-through has not been that formidable so the jury is still out but one can keep a positive outlook as long as the XBI can CLOSE above 88. The MONTHLY chart shows June was the tautest range in one year and that is generally considered a good thing, and again the importance of the very round 90 number being a brick wall between 2022 and the end of 2023. The top 3 holdings in SRPT UTHR and ALNY have been doing their part with recent surges. The 8th largest holding in BIIB could be ready to make a contribution if it can break above the bull flag pivot of 235 which would carry a measured move to 280.

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