A Long Way To Go
When your patterns and setups all come together to produce a sizeable move,
you can’t let your guard down just because you notched a victory. Readers of
“Chart of the Day” know that I pointed out recently that the falling biotechs
might find support at some longer-term support levels. As we saw today, the
biotechs found support as the BTK.X bounced a solid 3.4%.
Likewise, Celgene
(
CELG |
Quote |
Chart |
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PowerRating) experienced a similar bounce as it gained 3
15/16 to 24 3/4 as it bounced off of longer-term support. The main thing to
remember, though, is just because the biotechs got a good bounce doesn’t mean
they will soar back to new highs. As a trader, you’ve got to be open to every
possibility every day. While the biotechs looked good today, that’s no guarantee
for tomorrow. This setup has run its course and it’s probably time to move on to
another setup.
From here, be looking for the possibility of pullbacks and a resumption of
the uptrend, which would suggest a rally with legs.
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Until Tuesday,