SPDR S&P Biotech ETF (US: XBI) Technical price action indicates a potential upside after a prolonged downtrend since February 2020:

1. The formation of a larger falling wedge is seen as a potential bullish reversal pattern.
2. The bullish morning star pattern is seen rebounding from the major support zone at US$110.59-US$114.04. The last candle of the morning star is seen closing above the Tenkan-Sen.
3. The RSI indicates a rally and closing above the 40-line after dipping into the oversold region.

*Expected timeline of the trade is 15 weeks from the date of report issuance.

*Price remains in a downtrend as displayed by Ichimoku. Resistance at US$119.07 must be broken to further confirm the upside.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line