XBI has spent two weeks north of the 52 week moving average. This has been the most notable positive achievement in a 7 week consolidation pattern. Last week completely reversed the previous week’s gains.
There was a weekly buy signal, when a green candle was produced on March 29. This wasn’t a particularly good signal as it made a lower high and lower low compared to the white March 22 candle.
That turned out to be a decent place to buy as long as one was satisfied with the decent runup during the week of April 5.
It is not too bad to be holding it here, however that could well involve some stress if it probes support at the 52 and 13 week moving averages. The good news is that support is likely to hold.
Trend weakening is evident for the last month or so. Blue candles, (both rate of change measurements are negative) have become more prevalent. Blue candles can be good entry points during an uptrend, but a blue candle that is closing down is a questionable place to go long; there almost always is more negative movement in the near future.
I imagine any further decline will be contained near the 54 day moving average (88). If not, I’ll be happy that I don’t have a position.
The PPO histogram spike down is not a welcome sight.