Biotech Two-Step
When I can find an ETF or stock that has time,
price and
pattern all telling me the same story, I get excited about a trade opportunity.
The
(
BBH |
Quote |
Chart |
News |
PowerRating) is currently on track for a potential long trade. The stock has been in a
nice uptrend since Feb. 7, and in the last five trading sessions has pulled
back into key Fibonacci price support from 120.34-122.39. There are seven price
levels in this price zone acting as support.
Also, notice the pattern forming
from the March 19 high. In our chatroom we call this a “two-step†corrective
pattern. Finally, our time analysis shows a low could be put in between March 25
and March 27. If today’s low holds and I get a trigger to go long, my risk will
be just below this price support zone at $120.25 and my initial objective is
$130.84, which is the 1.272 extension of the March 19 high to today’s low. If
BBH does not provide a trigger and trades below our price support zone, I will
back away from buying as a deeper correction may be in order.
