Start with the daily exponential moving averages. The 8 is over the 21, the 21 is over the 34, and the price is sitting on top of all three. That order matters. It means every timeframe of the buyer is lined up in the same direction, the short-term, the intermediate, and the longer swing, all in agreement. Nobody who bought recently is trapped underwater, fighting to get out. That stack is the difference between a real trend and a stock just bouncing around, and it is the first thing I want to see before I will give a name a second look. Biogen has it, clean. But the stack alone is not what gets me. It is what is happening underneath it. The squeeze is on. For anybody newer, a squeeze is what you get when a stock goes quiet, when the volatility winds down, and the range tightens up until the chart is basically coiling in on itself. Think of it like a spring getting wound tighter and tighter. The longer it winds, the more energy it stores, and that energy has to go somewhere. When a squeeze finally releases, it tends to do so hard and fast, and it usually points in the direction the trend was already pointing. So when you put it together, you’ve got a strong trend, bullish pattern, and squeeze. Your Action PlanMarket volatility has picked up after Friday’s sell-off. Despite the large swings in the Nasdaq, we are seeing greater weakness in some sectors than others. Investors have been fleeing out of semiconductors and jumping into biotech. Even yesterday, when we had heavy selling pressure in tech, names like BIIB were trading higher. That’s what we call relative strength. And it matters in a market where everything doesn’t go up. I’ll be live in the Daily Profits Live room, calling out plays and taking shots if I see opportunities. If you want to be in on the action, check us out here. |
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