Healthcare Sector Review: 6/25/24
MONTHLY Consequence: The biotech group inside healthcare has been a widowmaker for many. Each time it seems to get going it records some kind of letdown. Could the prospects be brightening? Looking at the MONTHLY chart below, next Friday becomes very important to witness if the XBI can CLOSE above the very round 90 number. Throughout 2022-23 it was above in February-April 2022, August 2022, January, June, and December 2023, and again this January but none of them CLOSED above 90. Consider this area a line in the sand. If by Friday of this coming week, the XBI can CLOSE above 90 it would make April and May a potential bear trap. The WEEKLY chart has some appeal as well with the bullish hammer candle and notice the first WEEKLY CLOSE above the middle line in the Bollinger Band since the big move last November (bullish ADX crossover from late April is still intact too). Peering at the daily chart the fund feels like it is undergoing a magnetic pullback toward the very round par number, an area where it failed miserably in late February and early March. It reset with a couple of spinning top candles at the 200-day SMA in late April and may just be rounding out the right side of a cup base.