Impressive Breakout From Biotechs Taking Place (XBI)

From Chris Kimble: The chart below looks at Bio-Tech ETF (XBI) over the past three years.

It has spent the majority of the past couple of years inside of rising channel (A), reflecting that its trend remains up.

It created a series of horizontal highs over the past few months, which could be the top of a bullish ascending triangle pattern.

Of late XBI is now breaking out and it is now above prior “weekly closing highs” at (1), which sends a bullish price message to this ETF.

Full Disclosure- Members are long XBI, with a stop just below horizontal highs.

The SPDR S&P Biotech ETF (XBI) was unchanged in premarket trading Thursday. Year-to-date, XBI has gained 19.26%, versus a 3.83% rise in the benchmark S&P 500 index during the same period.

XBI currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #4 of 35 ETFs in the Health & Biotech ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.