The SPDR S&P Biotech (NYSE:XBI) chart suggests that the scam of buying up old drugs to raise their prices 7000% has about run its course.
XBI is working its way to the intersection of the bottom of its long-term rising megaphone (purple on chart) and top of its red megaphone, where it would usually put in a bounce.
Then it’s a strong favorite to return to the bottom of its blue flat-bottomed megaphone and put in a small right shoulder bounce there.
These two bounces have a great chance of putting a price channel on the chart.
XBI’s ultimate target is likely VWAP of the red megaphone on the chart at 17.63, but it will likely get there in the course of forming a price channel bottoming megaphone.