How The Biotech Panic Is Forming
Glancing at the chartbook this morning, we have come across a high timeframe monthly of biotech, replicating something that looks like a double top. Since the highs on October 05, the index has declined -10% to the 79 handle entering a high volume support in 78-79 level. If the 78-79 level is breached, there is a risk of another -10% correction to 71, but what’s different about this one, it’s a correction in low volume nodes. Anything above 61 point of control is a premium and we don’t like to buy premiums. Overall, we should prepare for a point of control reversion, it could take time, as nothing moves in a completely linear path.