4. Â Biotech – Breakout
As noted in a previous edition of the Tuesday Macro Technicals, Biotech equities (NYSEARCA:XBI) had been trading in a symmetrical triangle, and well wouldn’t you know it they’ve now broken out to the upside. The RSI has also broken it’s minor downtrend, confirming the move.
It now faces another test in the form of resistance around the $70 level (which served as resistance in early 2015, and support in later 2015), and recent history would suggest it could take a couple of goes before successfully breaking through. Â Overall technical view: Bullish, add on compelling break of resistance.
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