Time to nibble on biotech

All right, folks, today we’re taking a look at the biotech market, in particular, Biogen B IB, and the ETF X bi the tracks stocks in the biotech sphere. So we are looking at a couple of bullish scenarios in both B, IB and X bi. In fact, B IB has been on my short watch list for a while it’s been getting beaten down, but we’re looking at a potential buying point now based off of structure as well as seasonality. So you can see we have a bullish case here for both of them. B IB, started late last month carries into around the first part of the new year. SBI has a relatively shorter hold date. And you see a couple of weeks here around mid December into the end of the year, both coming in about 85% win rate over the last 1314 years. average profit has been 8% on B IB, and 3% on SBI. So B IB looks to pay a little bit more. And that is because it’s an individual stock as compared to a basket of X BI. So let’s take a look at these, we know that we have good seasonality backing us let’s take a look from a chart perspective and see what we have cooking. So this is a monthly as a monthly chart on the left, this is a daily chart on the right. So you can see here on b i b a couple of areas that I’ve been watching. And I’m going to take this tool outright here. And we’re going to draw this level indicating an area of structure that we are an area of interest for us on the monthly chart, which we did come back in touch here. And it looks like November of 20 and then rally sharply from this 240 level all the way up as high as 467. We’re back touching this area again for the first time since roughly a little over a year ago. Now if we go over to the weekly chart, if we go over to the weekly chart, we should look for other areas of interest as well. And we are getting that same area right here. So we’re getting matching areas on the monthly as well as the weekly. And now we’re looking for price to slow down here into this area, which we did. We’ve come down here to this area, slowing down a little bit actually making a little bit of a U turn, if you will. But we have a couple things that we still want to watch, we’re getting the trend line break, we got a trend line break on a strong market yesterday. And we are kind of hanging around basically unchanged, about down about a buck today as of this recording. So what we’re looking for now is we are looking for further confirmation either via a 123 bottom which we are getting a one two, or perhaps a divergence by signal. So we’re looking for divergence by signals probably won’t get one on the weekly over here. The last one we got was all the way back here last year in December of 2020 ended up being an awesome buy signal to the upside. Last buy signal we got here on the daily was last month the start of November, good enough for a short boost. But ultimately, this is the year that we’re looking to buy at some bi v, let’s take a quick look at x bi, the ETF probably going to see similar action. So let’s go to the monthly and we’ll do price level right here, here and right here that we’re trading down into already have traded down into it, then we go over to the weekly, we want to make sure that we map out all of these higher timeframes. And so we have this area right here. We’ve already touched it once we’ve already touched it twice. And now we’re kind of trading through this area probably have a next potential run down to this $80 area right around here.
So this one looks like it could be breaking down a little bit might see a short term boost here off of the daily you’d be looking for probably buys around the 117 118 area looking for targets up here at 135. Risking below these swing lows, so out of the two probably take a shot at b i b similar situation we’re looking for targets up here at the 280 area so about $50 from where we are and we’d be risking somewhere we need to really risk somewhere down here below the 220 mark so probably about $15 or so. So this is one I’d probably recommend trading with options either by buying call options called debit spreads, or selling bull put credit spreads.