From Chris Kimble: Biotech used to be an upside leader over the broad market coming off the 2009 lows. Biotech then officially gave up its leadership back in 2015, where it peaked and started underperforming the broad market.
Over the past 15-months, however, Biotech has started acting a little better. Below looks at Bio-tech ETF XBI and updates the pattern is has been forming of late.
The Biotech ETF XBI has been in an uptrend since the lows in early 2016. Of late, it looks to have formed a bullish ascending triangle and is working on a breakout at position (1).
We highlighted two overhead tests on the chart above that could become potential resistance zones, which eventually then could become overhead tests. This situation is worth watching very closely as this index fund rises within striking distance of these key levels.
The SPDR S&P Biotech ETF (NYSE:XBI) was unchanged in premarket trading Thursday. Year-to-date, XBI has gained 32.64%, versus a 8.69% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.