This is a brief follow-up on the recent XBI price action analysis.
The late January selling couldn’t push XBI in the oversold zone defined by the lower boundaries of the extended linear regression channel. Today’s bounce on double average volume produced a long white candle with a close near the top and the ATR(1) two times bigger than an average ATR(1) over the last year. It shows the change of character of the recent price action and willingness of buyers to step in at the higher price levels.
The volatility adjusted short-term P&F chart shows a bear trap (spring) in January looking like the December one but on lower selling pressure. The overall consolidation is not, technically, finished yet and can take more time but preliminary calculations from the second round of consolidation confirm the initial price target in the 70 area. The decline below 61 will negate this scenario.