Biotech stocks were really strong today. BIIB led the group with a $18.59 pop! ALXN added nearly $10. AMGN gained $5.34, erasing yesterday's loss. JAZZ climed +3%. ILM popped $6.61.
At first glance, BTK looks to be healthy
BTK has been consolidating for more than a month. Its daily MAs have bunched together. Just yesterday, BTK was look bearish when it sank below its daily MAs.
This is what happens when something is consolidating. BTK may close above or below its bunched-up daily MAs many times before the final direction is decided. Take a look at what happened in Sept-Oct. Another thing to note is that the MACD is still bearish, although it is somewhat flattening.
Do I sound bearish? I hope not. I am neutral at this point. I think people are starting make their positions ahead of the J.P. Morgan Healthcare Conference on Monday, January 12. So, let's be patient and see how things trade in the next couple of days.
Good night and HappyTrading! ™