The weakness in SPDR S&P Biotech XBI from its Apr. 7 high at 58.38 into the Apr. 12 low at 53.42 -- followed by an upside pivot reversal into Thursday's high at 57.04 -- has the look of a classic "retest of a prior upside breakout plateau" and a resumption of the underlying potential off of a base formation.
In this case, as long as XBI remains north of 53.42 support, the price structure continues to point higher -- toward my optimal upside target zone in the vicinity of 60.00 to 62.00.
Given the juxtaposition of my near-term momentum work with the rising price action, XBI should accelerate to the upside in the hours directly ahead.
If it fails to do so, I will be tightening my protective stops.
