IBB
The breakout everyone is talking aboutBuyer sub 285 on any morning weakness. I blew this trade yesterday. Made money but got shook out too soon.
Biotech chart is almost split in two and wanting the other sideFull recovery can't start until we base over 286
Check out weekly momentum on biotech. The tide is turning.Need a neutral to good close to the week tomorrow.
Trying this biotech ETF now. Bounce off of support at 270Would like to see it over 5 day MA as soon as possible but RSI held its trend too.
Buy on further pullback toward 270 or break above 290If it happens soon, RSI and price uptrend should still be in tact. Stop below shaded rectangle of interest.
IBB Bios shortIBB may tap 282.50 before dropping below 277.50 before the close. If this were to happen, check out IBB's 1 Week Chart. It will show a massive reversal candle.
I am short bios. Watch for potential 3.5% to 4% DROP in the BioTechs Friday April 8th
Long $XBIBullish signs beginning to emerge after 9 months of underperformance.
Bounce off of inside trend line from August high. SMAs of 5, 20, and 50 scrunched up inside midpoint of symmetrical triangle ready to slope upward with any price continuation. RSI closed over 50.
Entered at 50.46.
First price target is 60.00. Gap to fill, 200 SMA test, and second target at 64.25.
Stop below low on 3/29 and triangle at 47.87.
Approximate Risk / Reward = 1 / 3 at first target; 1 / 5 at second target
Strong ChartBullish Divergence on MFI & acc line led to 15m breakout of downtrend. Bullish MACD crossover
How To Play The Biotech BustBiotech stocks had tremendous runs over the last few years. Many advancing several hundred percent. But all good things in the stock market come to end, and the biotech group is no exception.
The advance over the last four to five years clearly reflected the improved growth rates that we saw biotech companies deliver over those years, and current fundamentals remain strong. Unfortunately, analysts have been revising their estimates downward, and now expect a major deceleration in growth over the next three years.
From a technical stand point, biotech stocks are clearly the weakest group in the medical sector and stock market. They are ranked at the bottom of the Investor’s Business Daily’s Industry Groups.
The group, as reflected by the Ishares Biotech ETF (IBB), has dropped over 40% since the market topped in July 2015, after advancing over 400% since 2011. On average, former leading stocks and groups, drop over 60% after topping.
How To Play The Biotech Bust
There are several options traders have to capitalize on the bust. They can short individual biotech stocks, or they can buy and/or short biotech ETFs. There are three ETFs that can be traded to take advantage of any biotech sell off.
The Ishares Biotech ETF (IBB) has pulled back to its fifty day moving average in low volume, after breaking down from a bearish head and shoulder base, in heavy volume, at the beginning of the year.
The ETF can be shorted right around the fifty day moving average as volume continues to dry up, or breaks down, in heavy volume, below $242.
Ishares Biotech ETF IBB
Ishares Biotech ETF (IBB) Pullback To 50 DMA in Low Volume
Aggressive traders can consider going long two biotech leveraged ETFs. The ProShares Ultra Short Nasdaq Biotechnology ETF (BIS), 2x leverage, or the Proshares Ultra Pro Short Nasdaq Biotechnology ETF (ZBIO), 3x leverage.
The entry point would be at the same time as the Ishares Biotech ETF (IBB) either stalls or rallies to the fifty day moving average in low volume, or starts to break down in heavy volume.
Whichever route you choose, the market will have to trend lower. As much as the group has wanted to break down over the last few weeks, it has been held up by the market’s rally attempt. But based on the poor relative strength of the stocks and ETFs that represent the group, it is clear, at least for now, the group wants to go lower.
Head and Shoulders forming on $XBI, just like in DecemberSince all-time highs, AMEX:XBI has developed 2 head and shoulders and is currently developing a third one. Given how overbought AMEX:SPY is and how troubled AMEX:XBI and NASDAQ:IBB are, I suspect this pattern will form. My target is roughly $38.
IBB Biotechnology sectorIBB, the tracking stock for the Bio sector looks ready to regain its upward trajectory. With the RSI and %R at very oversold positions it may be ready. We recently had a bounce off the 200ma, There appears to be consolidation in the blue box currently. Look for a move above the 8ema to enter long.
For you TA and biotech fansStill think the market will go lower, but open to idea of local bottom. Will probably enter a position in ATRA next week
!BIOTECH WARNING!Big short potential if IBB doesn't break back into the wedge tomorrow (2/11). Ill be looking to add more LABD by the end of the week if we don't see a bounce. This could be a big one!
Possible turning point for BiotechIBB (Bio Tech ETF) had been on down turn since the last hurrah in July.
It has been doing a beautiful correction A B C waves - currently at the end of wave (c) of C.
Wave A is a double 0.5 X 1 move of the Gann Box
Wave B is a 1.272 X 0.5 of the first Gann box.
Wave C so far has been a 0.5 X 0.766 (although it might end up at 0.618 and 0.886 or 1)
This movements are a perfect sample of alternating deep move short time - and shallow move long time ( A concept that I learn from Andrew Long).
And since the move align perfectly to Fibonacci lines - I am giving my salut to one of the greatest mind in technical analysis WD Gann - GANN ROCKS.
The price is in the middle of the side-way move after a hammer candle.
While yesterday hammer might be the end if wave (c), it might still have some down waves. moving from the current position or going to the targets at 244 or 207 before turning up.
A confirmation that the end of wave (c) is taken is needed before entering LONG
Target entry is a fib above the end points.
Potential target exit is on the green circles.
Since this is my first posting, I would like to thank these people always patient to answer my questions and encourage me to do my first posting - BM from WallStScalper, DaftSimon, and MikeSer .
Last but not least, my utmost appreciation to my mentor - the amazing - Andrew Long from www.triggers.ca who teaches me the HPTZ Method that I use to make this chart.
