Watching for a Biotech Breakout


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

1 ibb weekly

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.

2 ibb weekly

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

3 ibbalignm,ent

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

4 ibb dcl

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.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s