Biotech's 2.41% gain on Monday rekindled my interest in this sector.
Biotech had a great multi-year run peaking in July, 2015. It went on to print its mutli-year low in February of 2016. And since then it has been consolidating below the 300 level.
A closer look reveals that Biotech has recently had multiple tests of the 300 level.
Notice how the 50 week MA is now aligned with the 200 week MA.
Since the last test of the 300 level was launched from support from the convergence of both the 50 week MA & the 200 week MA, a clear and convincing close above the 300 level should break Biotech out of its 16 month consolidation.