Chris Kimble, of Kimble Charting Solutions, takes a technical look at this biotech ETF on a monthly basis to determine that it may potentially be creating the largest reversal pattern (bearish wick) in its history, which could send a message to a few indices, sectors, and stocks.
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Tuesday marks the 126th Anniversary of the Eiffel Tower.
In honor of this date, I thought I would look at the hottest sector in the states and see what could be found.
IBB—on a monthly basis—could be creating the largest reversal pattern (bearish wick) in its history. Even if its not #1, its a biggie. This potential reversal pattern is unfolding at a steep rising resistance line as well as its taking place at a long-term Fibonacci extension level. As you can see, monthly momentum is at level not seen in the history of IBB.
Since this is a monthly pattern, odds are high it could take awhile to see if this is the mother of all bearish wicks or not.
Remember, hardly any sector on the planet is hotter than biotech and what takes place here could send a message to a few indices, sectors, and stocks.
By Chris Kimble, Founder, Kimble Charting Solutions
