Keep an eye on XBI.
The high labeled “RIGHT” looks like the completion of an expanded flat.
Not hard to see the classic H+S pattern appears w/ the neckline shown as the bold green horizontal line.
If a “true” breakout then we would have expected the “polarity” of the black trend line hold as support – at least for a little bit. It sliced right thru it.
Next up is the .618 retrace. We really don’t have anything to project from so look for the 79-80 level to be support.
Hard to look at this chart as the company that I do Strategic Business Development for is in the biotech sector. What has been amazing is to watch all the VC’s and Private Equity people talk how bullish it is and – let’s face it – that was a NICE bounce off the green line but – what if its on a C wave ending the correction mentioned above?
The neckline has held for almost 5 years ….
Always look at the long term chart and here’s a long term MONTHLY LOG scale – the H+S pops out like a sore thumb, doesn’t it?
Seriously, asking a question here – does this look bullish?
