NBI trade ideas
Nasdaq Biotech Index $NBI in bad positionThe NASDAQ Biotech Index ($ NBI) is currently evolving in a well-marked down channel formed by DR1 and suppoty DS1 resistance. In a few days, sellers should test the very strong resistance of $ 3200. This resistance was broken sharply during the fall of the end of 2018, which made it very fragile. The most likely scenario (72%) would be that the resistance of $ 3200 cracks to let sellers get the weekly support of $ 2,800 (WS2). A very interesting trade short offering a risk / reward greater than 2 can be opened on the $ NBI. The target will be set at $ 2,800 and the stop-loss is set to the current value of the 50-day moving average. The trade yields 388 points, a little more than 12%.
Nasdaq Biotech: NBI A good low risk buy point coming up tomorrowNASDAQ BIOTECHNOLOGY INDEX: NBI A good low risk Buy Point Coming Up
Range trading between the parallels continues as it has done since last year's election low.
It' looks like it should fall back to 3267 where it becomes a buy again with stops just under 3250.
It should make a strong rally from here back up to 3575 for about 300 points gain, with
the first level of resistance at 3344 (close out first long here). A subsequent move above 3344
will be very positive for this index, taking up to 3435-3444 range before it falls away to
3380 at which point it should move higher to the 3575 target - at which point it becomes a short again
If this long call from 3266 is wrong, it means that the lower parallel that has guided this up-wave from
inception is also failing, an extremely bearish outcome should the stop at 3245 fail, signalling a move
back to 3168-3148 range (and a complete reversal of positions into near-term shorts) where this
index becomes a strong buy again.
Pharmaceutical stocks. The sector to watchBeen waiting for weeks, or at least a quarter for the Pharmaceutical stocks to turn bullish.
And with the Nasdaq Biotechnology Index breaking out of the consolidation phase at 3158, and Donald Trump finally making good his healthcare reforms, the suppressed undervalued pharmaceutical stocks should start to shine moving forward.
As such Household pharmaceutical names like Glaxosmithkline (GSK) or Pfizer (PFE) are worth putting on one's watch list.
Short biotechnology again near trend line resistance Biotech bubble has burst.
Every rallies are to be sold, and despite the euphoria/new highs in S&P and Nasdaq have barely registered a decent retracement in the biotech sector..
Here's a larger picture of how far biotechs have went since 2008:
The uptrend in S&P is limited, and it will only be a matter of time before it collapses off this rising wedge. However it is also risky to go against Janet Yellen (FED) with unlimited cash in its balance sheet. A short on a specific sector would be a much safer bet.
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I'm long on ZBIO (3x short biotech ETF) at 22.51, with a target around $30~40.
#Nasdaq #Biotech It ought to correct overboughtIt ought to correct overbought Nasdaq Biotechnology Index:
The Nasdaq Biotech index has grown about 50 percent since Yellen's valuation comments. Superarando por mucho el desempeño de los indices composite y S&P500, this boom is due primarily to the pharmaceutical companies who have monopolized the attention of investors the past few months, beyond the debate of whether exist a bubble formation the Nasdaq Biotechnology Index It ought to correct their overbought at least 6% as it has done in later months
www.bloomberg.com
How far can the NBI fall? Well, that's the million dollar question. The multi-year move, unequivocally, has been one for the books, but propensity has shifted to the downside. Momentum name valuations are getting clipped, seemingly, on a daily basis, as investor de-risking broadens and continues heading into the psychological "sell in May" period. Included are several key support levels to watch (S-1 through S-5).
NBI - Is a Pullback Imminent in the Biotech Sector?In aggregate, the impressive move in biotechnology has truly been one for the books, but is it sustainable? Although the fundamentals remain intact (biotech is a growth story and, indubitably, one that's here to stay), I think it is fair to assume that we could see a pullback of at least 10% at some point in the near future. What goes up, must come down. The million dollar question is when, and by how much?
