Biotech breakout - biotech analysis
" Biotech breakout - biotech analysis"
in the news Biotech breakout - biotech analysis? What this all about..... See below.
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So while everyone is concentrating on how the market is topping when it is clearly not, you can see that HEALTHCARE or biotech finally made a new high as well today. Have a look at the chart below. So for the first time in 2 years this laggard sectors has finally made a new high.
Even though tech recovered, it was one of the best areas or better performers of the market today.
Remember, that the S&P is up 17% - 18% since then, but what sentiment trader is showing our [==> members here <==] is the classic and text book pattern of an ascending triangle which could be one heck of a set up.
That being said, let us explain what could be the beginning of important catch up in terms of longer term charts. After two years of pausing consolidation you can see higher lows, and the break of resistance pointed out on the chart you see below. That could represent one hell of a set up. See the chart below.
What usually happens when the market takes off, and people miss out on that, they double back and find things to play and usually that means areas that lag, and recently we would be safe to say that the BIOTECH areas have been lagging. That is all this is, and there is a lot of catch up potential, and little downside risk, as shown in the ascending triangle.
Remember just a few years ago, the biotech sectors was actually the best performing areas of the market. And after a huge consolidation investors are seeing this as fair value again, and that is the reason for the resurgence here, and much interest among larger investors.
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