I've written about this industry group on many, many occasions, but up until today, we've simply seen a bunch of false hopes. Today is THE BREAKOUT. We gapped above resistance and, thus far, are adding to early gains. A strong afternoon would seal the deal - all in my opinion, of course.
I'm talking about biotechs ($DJUSBT).
Earlier this morning, I discussed the group during my "Break It Down" segment on Trading Places LIVE, my StockCharts TV show that airs every Tuesday and Thursday morning from 9:00am EST to 9:30am EST. If you feel you missed the boat on the likes of Apple (AAPL), Microsoft (MSFT), and Tesla (TSLA), then biotechs could be your next chance to cash in on this awesome secular bull market advance. Personally, I believe those three stocks are nowhere close to being done their advance, but that's a blog article for another day. Today, let's talk biotechs. Here's the long-term chart showing the bullish chart pattern:
Notice the RSI only dipped back to 40 in 2019 and recently moved above 70. It's beginning to look more like an uptrend and today's move above 2200 confirms it, so long as this breakout holds. If it doesn't, we may need a bit more patience.
Tomorrow morning, I'll be providing EB Digest subscribers my favorite biotech stock and it's one that I currently own. The EB Digest is FREE and it's published 3x a week and sent right to your email inbox before the stock market opens on Mondays, Wednesdays, and Fridays. If you're not already a free EB Digest subscriber, CLICK HERE to subscribe now and receive my biotech selection to be released tomorrow morning!
Happy trading!
Tom
