Biotech Builds Momentum After Months of Digestion π The Chart Report
Chart of the Day
π Today's Chart of the Day was shared by Dan Marchese.
Just two days into the week, the Biotech ETF (XBI) is flashing a big bullish engulfing candle as it attempts to engulf a four-week down-streak.
After breaking out from a multi-year base last October, biotech has been consolidating just beneath the 61.8% retracement level, quietly setting the stage for its next move.
Volatility is also compressed to some of the lowest levels in years, and a decisive breakout could spark sustained upside momentum as biotech is already making new multi-year highs relative to the S&P 500.
The Takeaway: Biotech has been digesting its gains following last year's breakout, with price holding near key Fibonacci resistance and a breakout looking increasingly plausible.
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