Build Positions in Biotech
As the month of October begins and broader markets sold off, Biotech sectors are still negative/ flat for the year. Market headlines from high prescription drug prices and lawsuits regarding the opioid epidemic have plagued some of the IBB's largest holdings; which have held biotech ETF's down while the S&P reached all time highs.
Fast-Track Synopsis:
LABU Technical Analysis:
Bullish Harmonic Gartley pattern and close to 52-week low.
1-year Gartley pattern should move LABU stock price back up to around $40 level (resistance) where we will be watching for a potential breakout
CCI measured "oversold" with the end of September pullback, CCI-slope is now trending higher,
This last pullback also measures a double bottom (data points are from Christmas 2018 and present)
Intra-day bullish RSI divergence, Daily RSI trending higher;
the MS Signal recently flipped green as of 10/1/2019 and is still indicating a nice swing opportunity to come.
Three-drives pattern bouncing toward resistance concurrent with double bottom and Gartley pattern.
Look for the support level (marked (x)) to hold.
See conclusion here!
Please like and follow so we can continue finding awesome charts/ trades. For more pre-researched Biotech trade-ideas click and visit us at MS Money Moves. Thanks in advance everyone!!
Disclosure: I do not own LABU, I may buy or sell within the next 48 hours. This is not a recommendation to buy or sell. Please do your homework before investing.
Fast-Track Synopsis:
- Biotech is a known high volatility trading environment;
- More Investors will become "Traders" with new $0 trading fee platforms from Schwab and TD Ameritrade.
- Once people begin trading stocks, they will find that high volatility is how the "big" day-trade/ swing trading money is made.
- New Med-tech and Biotechnology therapies (i.e. gene therapies, NASH/ NAFLD) are ripening and getting closer to approval.
- There are currently over 240 biotechnology companies with Gene therapy IP
- IP has been growing with RMAT and Breakthrough Designations due to unmet need of new novel treatments;
- As Biotech rolls into year-end, lower interest rates will propel company growth models which I believe will help drive buy outs.
LABU Technical Analysis:
Bullish Harmonic Gartley pattern and close to 52-week low.
1-year Gartley pattern should move LABU stock price back up to around $40 level (resistance) where we will be watching for a potential breakout
CCI measured "oversold" with the end of September pullback, CCI-slope is now trending higher,
This last pullback also measures a double bottom (data points are from Christmas 2018 and present)
Intra-day bullish RSI divergence, Daily RSI trending higher;
the MS Signal recently flipped green as of 10/1/2019 and is still indicating a nice swing opportunity to come.
Three-drives pattern bouncing toward resistance concurrent with double bottom and Gartley pattern.
Look for the support level (marked (x)) to hold.
See conclusion here!
Please like and follow so we can continue finding awesome charts/ trades. For more pre-researched Biotech trade-ideas click and visit us at MS Money Moves. Thanks in advance everyone!!
Disclosure: I do not own LABU, I may buy or sell within the next 48 hours. This is not a recommendation to buy or sell. Please do your homework before investing.
