Don't Ignore This Chart!

XBI Biotech ETF Surges To Four Month Highs

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The Biotechs topped out almost a year ago. With all the new technology in cancer treatment, and a few biotech conferences next week, the rotation towards Biotech is in full gear. I have shown XBI here as it has a lot of volume, but some of the other ETF's including SBIO, IBB, CNCR are all in play.

The new 4-month highs in RS is encouraging, but the SCTR is still pretty weak. The break above horizontal resistance at $58 is good with nice volume. Today the price action also broke through the downsloping trendline as it broke the horizontal resistance. A near-term test is the 200 DMA.


Today's volume candle was the highest in 6 weeks and the MACD looks to be turning up.

You can follow these links to check on the other charts. SBIO,IBB,CNCR.

I will be hosting a special edition webinar on Tuesday, June 7th. I plan to spin through the biotech sector and do a serious look at individual stocks in the space. Have a great weekend!

Good trading,
Greg Schnell, CMT, MFTA. 

 
Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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