Hit Me Baby One More Time:
The biotech space continues to live up to its widowmaker moniker (and Britney Spears reference) as every time it feels ready to go the floor drops out underneath. Could it be ready to break hearts “one more time” as it nears a collision course with the 200-day SMA above? That secular line is now sloping higher and a break above it in the short term could commence a beachball-held underwater breakout. PRICE must confirm and the MONTHLY chart is still holding a break ABOVE a bearish inverse head and shoulders formation and we know from FALSE moves can come fast ones in the opposite direction. Some individual long candidates here include the WEEKLY chart of SRPT which this week bounced off the very round par number as it undercut last November’s lows creating a legitimate double-bottom base with a potential add-on pivot of 138.91 (enter here with a stop below 98). I am not a big personal fan of single-digit names, but BCRX recently cleared a WEEKLY inverse head and shoulders trigger of 9 which carries a measured move to 14. The DNLI WEEKLY chart looks good against the very round 20 number with a bullish engulfing candle there the week ending 1/17 and a hammer off 20 last week too.