Biotech Breakout Alert

As I worked through my charts this weekend, one group stood out more than anything else: Biotech.

In a market full of noise and choppy price action, this is exactly what I’m looking for — pockets of strength. And this group has it.

On a relative basis, Biotech $XBI is completing a multi-year rounding bottom versus the broader market and already pushing to new highs.

To me, that’s what a brand new uptrend in leadership looks like.

Now the absolute trend is starting to line up as well.

XBI is coiling just below a key resistance level around 132 — right at the 61.8% Fibonacci retracement.

A breakout above that area would likely mark the start of a new leg higher, with 175 as a logical upside target.

The relative trend has already broken out. Now it’s the absolute trend’s turn to catch up.

When it comes to exposure in this group, a lot of investors stick with the ETF — and that works. Everyone has different goals, timeframes, and risk tolerance.

For me, I take it a step further and focus on the individual names showing the strongest setups within the sector. That’s where I want to be positioned.

Today, we’re buying a $2.6B biotech through our Minor Leaguers report — a biweekly scan focused on finding the best small-cap opportunities.

Want the full trade details and access to every small-cap setup we’re tracking this week? you can join us risk-free today.

Stay sharp 😉

Alfonso De Pablos, CMT

Director of Research, All Star Charts

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