Cycle Trading: Biotech Beginning To Be Bullish
|Biotech printed its lowest point on 11/14 following the day 10 peak. It formed a daily swing low and closed above the lower daily cycle band on Wednesday to confirm a new daily cycle.
The decline into the day 37 DCL broke below the previous daily cycle low causing biotech to form a failed daily cycle. So the daily swing low also signals a potential beginning of a new intermediate cycle.
Last week biotech printed a bullish reversal off of support from the rising 50 week MA. And biotech has now formed a weekly swing low to signal that this is week 1 of a new intermediate cycle.
Since emerging from the October 2016 ICL low biotech has established a weekly uptrend that is characterized by peaks above the upper weekly cycle band and lows above the lower weekly cycle band. The big picture is that after peaking in 2015, biotech formed a massive 29 month cup and handle consolidation pattern. And the weekly swing low sets up a low risk entry for the potential break out.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.