I’m watching to see if XBI (biotech sector ETF) finalizes this potential bearish engulfing candle at the close today with additional downside this week to firm up the case for a triple top high.
XBI daily June 4th
Back on March 13th, the previous failed attempt to break out above the January 29, 2018, all-time high in XBI resulted in a bearish engulfing candlestick, followed by a drop of nearly 16%. As back then, XBI once again has negative divergences that indicate the biotechs are likely poised for the next major correction soon, even if XBI manages to foil today’s potential bearish candle & punch up to make a marginal new high soon. As such, XBI is on watch for a potential short trade candidate.
XBI bearish engulfing candles June 4th