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At the beginning of March I ask if investors were interested in “Buying these Dips” in Bio Tech, Tesla and Google. The only issue was, these charts were inverted and each was hitting a key Fibonacci extension level.
Since Janet Yellen mentioned that Bio-Tech stocks were overvalued yesterday, I wanted to revisit the charts that were published at the peak in prices.
Left chart reflects the bigger picture of Bio Tech, as it was hitting the top of a steep rising channel and a Fib extension level. Right chart is a closer view that reflects that IBB hit another lower resistance line at the top of a bearish rising wedge, which is a set up for lower prices two thirds of the time and it looks to be breaking support.
These are weekly charts. If IBB remains below this support line a couple of weeks from now, it would be sending a deep concerning message for this white hot sector.