Its all fun and games until someone gets a clinical trial in the eye. Biotech is getting maimed today and has been since that topping candle that IBB printed last Friday. IBB is now down about 8% from Fridays intrday highs.
IBB has broken its 8,10 and 21 day simple moving averages over the last few days and if weakness persists, look for a test of the 50 day moving average ( 332.71) which also coincides with the uptrend line (green arrow).
If the 50 day and uptrend doesn’t hold, then look for some lateral support around the 100 day moving average around 318.
We’ve seen hard and swift pullbacks in biotech in December and again in February. The sector went on to make new all time highs in both scenarios, so don’t count this group out by any stretch.
This pull back was overdue. Right now I’m looking to see if the 21 day moving average holds by days end for IBB. Corrections beget opportunity.
I’m looking for setups with better entries, just in case. There is undoubtedly some wreckage here, so things need to settle first. I’d like to see another 5% down from here, but with this group we may not get the chance. We’ll see.
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