The Biotech ETF (NYSE:XBI) is testing a major support zone as the week comes to an end. This key area includes the initial all-time high set back in 2018 and the 2019 peak. Also beefing up the lower band is an upward sloping 200-day moving average. Just above the 200D is the 1/3 retracement level of the rally off the March lows. At midday the XBI is rebounding indicating there is buying interest near $101.00.
This major support zone runs from $101.50 down to $98.00.
The top XBI holdings:
| Novavax (NASDAQ:NVAX) Inc |
| InVitae Corp (NYSE:NVTA) |
| Aimmune Therapeutics Inc (NASDAQ:AIMT) |
| Momenta Pharmaceuticals Inc (NASDAQ:MNTA) |
| Natera Inc (NASDAQ:NTRA) |
| Emergent Biosolutions Inc (NYSE:EBS) |
| TG Therapeutics Inc (NASDAQ:TGTX) |
| Sage Therapeutic (NASDAQ:SAGE) |
| Mirati Ther (NASDAQ:MRTX) |
| Immunomedics Inc (NASDAQ:IMMU) |
Note: We are long the XBI in some managed accounts. We are looking to add to positions.
Gary S. Morrow’s original post can been read here.
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