Spdr S&p Biotech XBI Investment Analysis

October 02, 2022, 00:45 am ET, BY Joseph H.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

With an objective approach to Spdr S&p Biotech (NYSE: XBI), Stock Traders Daily attempts to go with the flow of the market by utilizing a combination of market analysis and stock analysis.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for XBI change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if XBI is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for XBI too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for XBI

• Buy XBI slightly over 68.94 target 83.27 stop loss @ 68.74 Details

The technical summary data tells us to buy XBI near 68.94 with an upside target of 83.27. This data also tells us to set a stop loss @ 68.74 to protect against excessive loss in case the stock begins to move against the trade. 68.94 is the first level of support below 79.32 , and by rule, any test of support is a buy signal. In this case, support 68.94 is being tested, a buy signal would exist.

• Short XBI slightly under 83.27, target 68.94, stop loss @ 83.51 Details

The technical summary data is suggesting a short of XBI as it gets near 83.27 with a downside target of 68.94. We should have a stop loss in place at 83.51though. 83.27 is the first level of resistance above 79.32, and by rule, any test of resistance is a short signal. In this case, if resistance 83.27 is being tested, a short signal would exist.

Swing Trading Plans for XBI

• Buy XBI slightly over 83.27, target n/a, Stop Loss @ 83.03 Details

If 83.27 begins to break higher, the technical summary data tells us to buy XBI just slightly over 83.27, with an upside target of n/a. The data also tells us to set a stop loss @ 83.03 in case the stock turns against the trade. 83.27 is the first level of resistance above 79.32, and by rule, any break above resistance is a buy signal. In this case, 83.27, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short XBI slightly near 83.27, target 78.40, Stop Loss @ 83.51. Details

The technical summary data is suggesting a short of XBI if it tests 83.27 with a downside target of 78.40. We should have a stop loss in place at 83.51 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 83.27, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for XBI

• Buy XBI slightly over 80.47, target 83.27, Stop Loss @ 80.28 Details

If 80.47 begins to break higher, the technical summary data tells us to buy XBI just slightly over 80.47, with an upside target of 83.27. The data also tells us to set a stop loss @ 80.28 in case the stock turns against the trade. 80.47 is the first level of resistance above 79.32, and by rule, any break above resistance is a buy signal. In this case, 80.47, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short XBI slightly near 80.47, target 78.40, Stop Loss @ 80.66. Details

The technical summary data is suggesting a short of XBI if it tests 80.47 with a downside target of 78.40. We should have a stop loss in place at 80.66 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 80.47, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

XBI Ratings for October 02:

Term →	Near	Mid	Long
Rating	Weak	Weak	Weak
P1	0	0	54.33
P2	76.37	73.98	68.94
P3	80.47	78.40	83.27

Support and Resistance Plot Chart for XBI

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