It looks like the SPDR S&P Biotech ETF (XBI) may have reached a key pivot level where it is at risk of a retracement. The ETF established a bearish shooting star candlestick pattern on Friday, representing a one-day flip from buyers being in charge to sellers taking over. And it looks poised to retrace lower. Resistance was seen in an area of Fibonacci confluence around Friday’s high of $99.99 (also a weekly high). Each of three rising ABCD patterns or zigzags show a harmonic price level around Friday’s high. The first is identified as an ABCD pattern on the charts.
Last week’s high completed a $9.71 or 10.8% rally from the most recent swing low at $90.28. XBI bounced right off support at the 50-Day simple moving average (MA). This tells us to watch the 50-Day line as a maximum likely pullback, along with the uptrend line. However, the more confident target looks to be around the most recent breakout level of $95.40. Once a correction is complete the developing long-term uptrend would be anticipated to continue.More By This Author:Has Bitcoin Reached A Temporary Top?
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