The SPDR S&P Biotech ETF (XBI) is an exchange-traded fund that tracks the biotechnology section of the S&P Total Market Index. This ETF permits financiers to acquire direct exposure to big, mid, and small-cap biotech stocks. If you're interested in biotechnology, XBI might be worth checking out even more. Here are a few of its leading holdings and their portion weights: United Therapeutics Corporation (UTHR): 2.92%. Precise Sciences Corporation (EXAS): 2.91%. Gilead Sciences, Inc. (GILD): 2.89%. Sarepta Therapeutics, Inc. (SRPT): 2.87%. Amgen Inc. (AMGN): 2.84%. Alnylam Pharmaceuticals, Inc. (ALNY): 2.65%. Regeneron Pharmaceuticals, Inc. (REGN): 2.64%. Vertex Pharmaceuticals Incorporated (VRTX): 2.60%. AbbVie Inc. (ABBV): 2.60%. BioMarin Pharmaceutical Inc. (BMRN): 2.56%.
In July, we described how we purchased a blue box on XBI and how we created over 18% in earnings. In addition, we kept open the possibility that the ETF will continue to increase and might reach around 108.45. To see how we dealt with the trade from the blue box, you can take a look at the old blog site here: Biotech ETF (XBI) Rallied from heaven Box Hitting Target
XBI weekly chart March 23rd 2024
In the chart above for the month of March, we can see the course we are anticipating for XBI. It had actually completed a Great Super Cycle at 174.79 high and after that made a correction. The pullback established a zig zag structure where wave (a) ended at 118.23 low. Instantly, we had a brief wave (b) that reached 141.50 high and after that resumed with the bearish motion. Wave (c) extended reaching the 61.78 low to finish wave ((II)). At this moment, we searched for a bullish extension; nevertheless, by that date the structure was unclear. Considering that with just have 3 waves, it might be a diagonal or a nest-type structure. The coincidence with the 2 structures is that both needed to fix before continuing upwards and we lean towards the diagonal due to the fact that it is more conservative, as we see in the chart.
XBI weekly chart November 25th 2024
The wave I of the diagonal ended at 95.17 high. Wave II constructed a zig zag correction with a flat structure in the middle. This pullback ended at 63.80 low and rally once again. Wave III did a strong rally as wave I reaching 103.53 high. The retracement as wave IV completed at 81.14. The last push to the advantage was a little irregular. It might be identified as a ending diagonal to 105.47 high, finishing wave V and wave (I). Presently, the wave (II) has actually begun adn we are seeking to end 3, 7 or 11 swings correction where we like to purchase the dips versus 61.78 low.
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