« Oil Forms Rising Flag/Wedge | Main | The Dow Retraces »
March 31, 2006
BBH Firming at Support
The Biotech HOLDRS (BBH) is firming just above key support at 190 and a triangle has taken shape over the last few weeks. This is a neutral pattern dependent on a break to establish a directional bias. A break below 190 would signal a continuation of the Nov-Feb decline and be quite bearish. Should the index hold support, a breakout at 200 would be bullish. That seems a long ways off though and more aggressive traders may want to focus on the harami that formed this week (long black candlestick and smaller white candlestick). This is a potentially bullish candlestick reversal and a move above 195 would start a move higher within the triangle.
Posted by Arthur B. Hill at March 31, 2006 05:17 AM