Biotech has had a hard time of it lately due to both political risks related to the election and litigation risks from the opioid epidemic. All of this, of course, on top of broad market weakness due to the China trade war.
However, biotech earnings are better than most sectors this season, so the bear market likely won't continue forever. I've drawn a trend line on my 1-hour chart and am watching for an upward breakout. Today we had some nice volume come in as we recovered from oversold on the daily chart and achieved our first green day for some time. However, we fell short of the minimum 6 million shares I'd like to see to signify a true reversal. We also fell short of breaking my trend line.
I expect LABU will fall to about 25.50 before it's likely to get a real bounce.
However, biotech earnings are better than most sectors this season, so the bear market likely won't continue forever. I've drawn a trend line on my 1-hour chart and am watching for an upward breakout. Today we had some nice volume come in as we recovered from oversold on the daily chart and achieved our first green day for some time. However, we fell short of the minimum 6 million shares I'd like to see to signify a true reversal. We also fell short of breaking my trend line.
I expect LABU will fall to about 25.50 before it's likely to get a real bounce.
Note
We're testing the trend line this morning, but so far getting rejected. Note
BOOM. Trade closed: target reached
After getting reject from 52-week highs, I suspect that biotech has seen the top for now.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.