Today’s Chart of the Day was shared in a note by John Roque of 22V Research. It's a weekly chart of the Biotech ETF ($XBI) over the past 16 years. John points out that Biotech is attempting to emerge from its worst bear market. $XBI dropped 65% over 65 weeks, between February 2021 and June 2022. The stats in the top left corner show that this was the most severe decline for $XBI since its inception in 2006. It found support near the 2018/2020 lows, around $65, and it recently reclaimed its 40-week moving average (green). John explained; "Weekly momentum via the MACD (middle panel) continues to slowly wend its way toward positive territory. The modest absolute price target of $100 appears to fit with the “top of the range” for the MACD. A target above $100 and MACD action above 5 seem a bit too aggressive for this period."
