Replies to post #11093 on 123Tom's TA study group

[Citrati]

My 2cents on Sab quote.
On a weekly XBI is now running into strong resistance zone from here to low 90's with a down angled 100period at 81.28 currently near the bottom of that zone.
The 50period is flat at 79.99.
For momentum stoch is getting near overbought and rsi/adx still have a bit of room. For trend both macd's are showing at highs for the last year. There is room for more if the highs from 2022 are in play for the XBI sector. If XBI is going to fight for up then closing with support above 82.65 is a must. without it then consolidation or down is the higher odds.
https://stockcharts.com/h-sc/ui?s=XBI&p=W&yr=3&mn=0&dy=0&id=p43210107402

Comparing the weekly AVXL to the XBI, XBI is the more advanced chart. AVXL is pushing against the 50period. It has flattened and trying to turn up. Very similar chart setup with AVXL having more structural resistance to go through.
There is potential soon in both for a cup and handle pattern.
https://stockcharts.com/h-sc/ui?s=AVXL&p=W&yr=3&mn=0&dy=0&id=p37486996519

Comparing daily charts.
XBI indicators are all overbought. Opportunity to make support here at the 200 period, chart cool and form cup and handle.
https://stockcharts.com/h-sc/ui?s=XBI&p=D&yr=0&mn=6&dy=0&id=p27122755599
AVXL eerily similar. Opportunity to make support at 200 period, for chart to cool and form cup and handle to make an attack that August 9.89 high while XBI would go after its August high of 86.8
https://stockcharts.com/h-sc/ui?s=AVXL&p=D&yr=0&mn=6&dy=0&id=p58173943002

That is the case for up.
If that doesn't transpire then one can pick the support levels for retrace testing.
If AVXL news is sufficiently strong/amazing then they don't need to move in tandem.

Conclusion. TA theory is making a case for consolidation and needing support. FA can trump that through news, so IMO it boils down to timing of news.

[sab63090]

I personally believe that we are at a Big Inflection spot.....using the weekly charts give the best view for investors at this point...looking at AVXL the weekly shows the trendline resistance level clearly with the spike high levels where a line can be drawn, it stands out & you can just "eyeball it"...I don't even need charts, I can just look and see the standout levels. If AVXL pushes higher from here, it might just explode beyond that 10 level, there is a sweep up channel...perfect set up.

As far as the XBI is concerned...I made the comment several weeks ago that many portfolio managers know that groups that did not do well in any giveThe XBI has taken out the 200 day on the daily and is right on the verge of breaking the 50 week (1 yr) sma...n year, do very well in the new year & I realize that the biotech group has done poorly for several....anyway, I think 2024 will be strong for this group.