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Independent Analyst
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.
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