Don't Ignore This Chart!

Biotech Is Broadening As An Arrowhead (ARWR) Soars

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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.

Good trading,
Greg Schnell, CMT, MFTA.

 

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he 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 Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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