Watching for a Biotech Breakout

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Biotech’s 2.41% gain on Monday rekindled my interest in this sector.

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Biotech had a great multi-year run peaking in July, 2015. It went on to print its mutli-year low in February of 2016. And since then it has been consolidating below the 300 level.

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A closer look reveals that Biotech has recently had multiple tests of the 300 level.

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Notice how the 50 week MA is now aligned with the 200 week MA.

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Since the last test of the 300 level was launched from support from the convergence of both the 50 week MA & the 200 week MA, a clear and convincing close above the 300 level should break Biotech out of its 16 month consolidation.

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