Biotech has been moving up recently as a part of this bullish trend. XBI is one of the many Biotech ETF's. The SCTR breakout is nice to see and the ETF has formed a nice up-trending channel.
As more Biotechs participate, there are some fresh breakouts showing up. Today is a small cap with some nice technical signals. Arrowhead Pharmaceuticals (ARWR) is breaking above a 10-month base. The SCTR has been perking up lately and gave us an early warning things were improving. The Relative Strength is breaking to new highs. With the nice price action breakout, this looks interesting.
We can see the volume perking up, especially in the zoom box. Biotechs are notoriously volatile and this stock had the huge price/volume shock last year and then went on to build a large base. It looks like whatever they were getting excited about is starting to show up. I'd use the $6.50 level as a hard stop.
Greg Schnell, CMT, MFTA.