Don't Ignore This Chart!

RSI Hits Support Zone for the Biotech SPDR

XBI surged the first two weeks of January, and then corrected the next six weeks with a falling channel. The fall is ever so slight though. A move above 96.5 would break the channel trend line and signal a continuation of the bigger uptrend. The indicator window shows RSI hitting the 40-50 zone this week. A move above 60 would reverse the downtrend in RSI.

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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