Chart of the Day - Thursday, November 7, 2024

🏆 Today's Chart of the Day was shared by John Roque (@daChartLife). 
 

• The riskiest areas of the market have been breaking out to new highs this week. However, one of the usual suspects hasn't shown up yet... Biotech. 
   
• John points out that the SPDR Biotech ETF ($XBI) is knocking on $104 for the fifth time this year. Each rejection was followed by a higher low, creating a tightly coiled bullish pattern at resistance. 
    
• If $XBI breaks $104, it will open the door to an upside target of $130, which coincides with a shelf of resistance from 2021. A breakout would benefit the Russell 2000 as Biotech is its second-largest industry group. 
   

The Takeaway: Biotech is primed for a breakout as $XBI tests resistance at $104. Clearing this hurdle would likely boost the Russell 2000 and open the door to further upside for Biotech stocks.