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Biotech Sector Outlook (video)

As this video ran longer than I had anticipated, I'll sum up my thoughts for those that don't have the time or inclination to watch the entire video. Despite the fact that the biotech sector has been drifting higher in a choppy but overall bullish trading range since the February lows, there is very little, if any, evidence on the long-term charts that indicates the bear market off the July 2015 highs is over. The biotechs very well could be on their way to new highs but again, the technical evidence to support that case just isn't there yet, although it could be very soon should the sector continue much higher.

Zooming down to the daily charts, many of the top components of the biotechs have been moving higher following bullish chart developments with most now approaching significant resistance levels which, if clearly taken out, would be bullish but those same levels could also offer objective shorting opportunities if the recent gains in the sector is simply a bear market rally in its latter stages.

The video starts off with discussion of the broad markets & how that will likely determine the next major trend in the biotechs, followed by an overview of XBI (SPDR S&P Biotech ETF) as well as a detailed look at the charts of the top 10 components of the sector. Key technical levels, including some potential price targets on many of these stocks or ETFs are included.

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Jul 26, 2016 3:36pm|Categories: Equity Market Analysis|Tags: , , , , , , , , , , , , |5 Comments

5 Comments

  1. snp July 26, 2016 3:47 pm at 3:47 pm

    bearullish flag

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  2. TXUTrader July 26, 2016 4:08 pm at 4:08 pm

    Thanks Randy,

    I think biggest move in the markets today was the Semi’s breaking up on strong volume. Also Transports had a good day, likely on benefits of lower cost oil.

    Doesn’t feel like the market wants to go down this week. Expecting new highs and then correction/pullback in August.

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  3. dan123 July 26, 2016 5:08 pm at 5:08 pm

    Thanks Randy, great recap of biotech.
    Last week i started scaling into a long position in BIS considering that the biotech bullish scenario will be done this month along with the market.

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    • rsotc July 27, 2016 10:46 am at 10:46 am

      Thx Dan. BIS sounds like a good choice for a swing short as the decay won’t be nearly as bad as LABD. Good luck!

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  4. snp July 27, 2016 12:00 am at 12:00 am

    amgn reports july 27 amc

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