We finally got that breakout in Biotech! – January 12, 2023
This is Scott with your Chart of the Day. I want to talk about biotech. Biotech ( NYSEARCA: XBI ) finally broke out of this long base of consolidation.
You may remember, for the last month or so I have been talking about this chart as it has been grinding sideways along these moving averages. And so today we finally got a nice break out here coming on higher than average volume.
I definitely want you to keep your eyes on the biotech sector ( NYSEARCA: XBI ). This chart is probably a little bit too extended for a clean entry but I think you could watch for an eventual backtest of this move back to either the 8-day or that 21-day exponential period moving average.
Let those moving averages catch up to price so you are not buying too high and then getting shaken out of what could be a nice longer-term trend out of this long base breakout.