New Beginnings?
Biotech has made a robust move, and one can question the motives until the cows come home. Is it the emergence of a likely Trump victory (spare me the politics) or the thought of higher interest rates dissipating? I judge my actions solely on how PRICE is behaving and one can not deny the power the XBI has displayed. Below is the daily chart and it is not shying away here from the very round par number, at least not yet, like it did earlier in 2024. On the WEEKLY chart, 100 played a critical role as well with a sharp rejection there, with the second week of March recording a bearish dark cloud cover candle at the 200 WEEK SMA. This Friday will be vying for its first CLOSE above that secular line too. The MONTHLY timeframe looks excellent and remember we have been speaking about the break ABOVE the bearish head and shoulders formation and we know from FALSE moves come fast ones in the opposite direction. Now it has carved out a bull flag pattern with the neckline right at the 50 MONTH SMA and a break above 103.50 by 7/31 would carry a measured move to 144.