Biotech ETF (XBI) ended a diagonal – Looking for buying dips

The SPDR S&P Biotech ETF (XBI) is an exchange-traded fund that tracks the biotechnology segment of the S&P Total Market Index. This ETF allows investors to gain exposure to large, mid, and small-cap biotech stocks. If you’re interested in biotechnology, XBI could be worth exploring further. Here are some of its top holdings and their percentage weights: United Therapeutics Corporation (UTHR): 2.92%. Exact Sciences Corporation (EXAS): 2.91%. Gilead Sciences, Inc. (GILD): 2.89%. Sarepta Therapeutics, Inc. (SRPT): 2.87%. Amgen Inc. (AMGN): 2.84%. Alnylam Pharmaceuticals, Inc. (ALNY): 2.65%. Regeneron Pharmaceuticals, Inc. (REGN): 2.64%. Vertex Pharmaceuticals Incorporated (VRTX): 2.60%. AbbVie Inc. (ABBV): 2.60%. BioMarin Pharmaceutical Inc. (BMRN): 2.56%.

In July, we explained how we bought a blue box on XBI and how we generated over 18% in profits. In addition, we kept open the possibility that the ETF will continue to rise and could reach around 108.45. To see how we handled the trade from the blue box, you can check out the old blog here: Biotech ETF (XBI) Rallied from the Blue Box Hitting Target

XBI weekly chart March 23rd 2024

In the chart above for the month of March, we can see the path we are expecting for XBI. It had finished a Great Super Cycle at 174.79 high and then made a correction. The pullback developed a zig zag structure where wave (a) ended at 118.23 low. Immediately, we had a short wave (b) that reached 141.50 high and then resumed with the bearish movement. Wave (c) extended reaching the 61.78 low to complete wave ((II)). At this point, we looked for a bullish continuation; however, by that date the structure was not clear. Since with only have 3 waves, it could be a diagonal or a nest-type structure. The coincidence with the 2 structures is that both had to correct before continuing upwards and we lean towards the diagonal because it is more conservative, as we see in the chart.

XBI weekly chart November 25th 2024

The wave I of the diagonal ended at 95.17 high. Then wave II built a zig zag correction with a flat structure in the middle. This pullback ended at 63.80 low and rally again. Wave III did a strong rally as wave I reaching 103.53 high. The retracement as wave IV finished at 81.14. The last push to the upside was a little irregular. It could be labeled as a ending diagonal to 105.47 high, completing wave V and wave (I). Currently, the wave (II) has started adn we are looking to end 3, 7 or 11 swings correction where we like to buy the dips against 61.78 low.

Share: Feed news

FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.