Budding Biotechs?
The biotech space via the XBI has put up a nice showing as of late. Perhaps investors are anticipating some nice M&A activity, or some tax selling pressure relief, falling interest rates, etc. The daily chart below shows the illustration with a break above the bullish falling wedge pivot of 91 carrying a measured move to 105 (bullish inverted hammer candle Monday). Now it must hold that trigger or all bets are off as we know the best breakouts tend to work right away and those that struggle and falter fast are big warning signs. The MONTHLY chart will produce a new candle Friday and this week is chock full of earnings and the Fed meeting Wednesday. The break ABOVE the bearish head and shoulders pattern is hanging on by a thread, but the 50 MONTH SMA has been a formidable blockade. Remember 2025 will be the year of the stockpicker and if one does their homework will find plenty of names shining in the overcast market shadow. Below is the daily chart of RPRX which was oblivious to Mondays PRICE action and broke above a bull flag pivot of 31, that carries a measured move to 36. Notice how the 12/20 bullish morning star gave the green light rising 2.6% that session is monster volume.