XBI: Break-down or bear trap?

30 mai 2017

XBI looks to be completing it's final leg down since this correction began in early-May. RSI on the 5-yr chart has reached levels not seen since the early-Nov 2016 lows. Long-term support in the RSI trading channel is currently being tested, and I expect it to hold and act as a spring board for Wave-3 to new all-time highs by early 2018.

I am long from $68.65. This scenario is nullified if the early April low of $66.00 is broken.

31 mai 2017

Note

Price found support today at $66.66 which is just above the downside target of $66.42 where a = c.

https://www.tradingview.com/x/kQwXWtC2/[image/]

Importantly XBI's cousin IBB closed above support at $285.85. Today's intra-day low of $282.74 missed the downside target of $282.82 where a = c.

Note the above wave counts imply XBI and IBB are now both aligned in intermediate iii of primary 5. XBI micro 3 and IBB micro 1 which explains why it has lagged XBI in progression. New 52-weeks would provisionally confirm each count.

Importantly BTK has not confirmed a breakdown either and supports a continuing uptrend to new ATH later this fall and into the new year.

https://www.tradingview.com/x/5rFiLum4/[image/]

31 mai 2017

Note

correction on the IBB count. I have it provisionally beginning minute 1 of minor 3.

XBI and BTK beginning minute 3 of minor 3.