Cathy Comeback?
Within the diverse healthcare arena if we drill down into the biotech space we have the “mature” IBB, the more “dynamic” XBI, and one rung lower on the risk angle is the WEEKLY chart below of the ARKG. We know from FALSE breakouts can come powerful moves in the opposite direction, and this one broke firmly ABOVE the 1 1/2 year-long bearish descending triangle the week ending 2/14 jumping 9%. However, the very next week recorded a bearish engulfing candle dropping 8.4% and it is now on a 4-week losing streak. One positive takeaway could be the spinning top last week that bounced in the 22 area. These candles are known for suggesting selling pressure on the downside is abating. Since the lows in Q4 ’23 this level has held up 6 times, so perhaps the PRICE memory here could make this a good risk/reward candidate on the long side. There will be plenty of impediments with the ten-year yield now looking like it may have bottomed and starting to build the right side of a double-bottom base. The top 2 components that make up almost 20% of the fund in CRSP and TWST have dubious charts so treat this as speculation and stay small. CRISPR is sporting a bear flag and not responding well to the gap fill from 2/13 and Twist is a bit better with two big bullish engulfing candles and a doji on Thursday (and a bullish MACD crossover). Weakness was forthcoming with the quick failure of the break above a double bottom trigger of 51.41 from 1/22.