When Spdr S&p Biotech (XBI) Moves Investors should Listen

August 24, 2022, 03:45 am ET, BY Tom S.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

How do we know what is going on #behindthescenes of a company?  According to Stock Traders Daily, a 20-year #financialindustry innovator, the best way to do this to to watch the price action in the stock. The  Spdr S&p Biotech (NYSE: XBI) report below is a real world example. Included are trading plans for XBI, but this report is static. If you want an update, or a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for XBI

• Buy XBI slightly over 78.78 target n/a stop loss @ 78.55. Details

The technical summary data tells us to buy XBI near 78.78, but there is no current upside target from the summary table. In this case we should wait until either an update to the summary table has been made (which usually happens at the beginning of every trading day), or until the position has been stopped. The data does tell us to set a stop loss 78.55 to protect against excessive loss in case the stock begins to move against the trade. 78.78 is the first level of support below 87.78, and by rule, any test of support is a buy signal. In this case, if support 78.78 is being tested, a buy signal would exist.

• NONE . Details

NONE .
There are no current resistance levels from the summary table, and therefore there are no Short resistance Plans which tell us to short upon tests of resistance. Resistance levels have broken higher and unless the stock reverses lower and below support levels again short positions look risky.

Swing Trading Plans for XBI

• Buy XBI slightly over 91.88, target n/a, Stop Loss @ 91.61 Details

If 91.88 begins to break higher, the technical summary data tells us to buy XBI just slightly over 91.88, with an upside target of n/a. The data also tells us to set a stop loss @ 91.61 in case the stock turns against the trade. 91.88 is the first level of resistance above 87.78, and by rule, any break above resistance is a buy signal. In this case, 91.88, 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 near 91.88, target 86.13, Stop Loss @ 92.15. Details

The technical summary data is suggesting a short of XBI if it tests 91.88 with a downside target of 86.13. We should have a stop loss in place at 92.15 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, 91.88, 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 91.88, target n/a, Stop Loss @ 91.67 Details

If 91.88 begins to break higher, the technical summary data tells us to buy XBI just slightly over 91.88, with an upside target of n/a. The data also tells us to set a stop loss @ 91.67 in case the stock turns against the trade. 91.88 is the first level of resistance above 87.78, and by rule, any break above resistance is a buy signal. In this case, 91.88, 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 near 91.88, target 86.13, Stop Loss @ 92.09. Details

The technical summary data is suggesting a short of XBI if it tests 91.88 with a downside target of 86.13. We should have a stop loss in place at 92.09 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, 91.88, 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 August 24:

Term →	Near	Mid	Long
Rating	Weak	Strong	Weak
P1	0	0	52.93
P2	83.47	86.13	65.96
P3	86.06	91.88	78.78

Support and Resistance Plot Chart for XBI

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