We finally got that breakout in Biotech! – January 12, 2023

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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.

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