Bitcoin's Breakdown, Biogen and QFIN
There's a lot to sort out after last week.
Good Morning, all!
Like I said late last week, it was a quiet week from me given all the news flow and choppiness in the market. Fed days are often tough and when combined with a quad-witch day, it can turn into a choppy, trend-less mess.
Less is more on these days!
In any regard, we saw an 86% downside day on Friday (again, quad witch) get offset by an 82% upside day on the NYSE on Monday. So things are starting to sort themselves out. Let’s look at a few charts.
Bitcoin
Bitcoin is falling right back into that $30-$31K support range I’ve pointed out before. While we have to assume this level (and the 50-week moving average) is support, we can only count on it for so long.
If there’s a bounce, let’s see if Bitcoin can get back to the $35K range. If it can, Bitcoin needs to reclaim its 10-day and 21-day moving averages to reverse the current trend.
If current support fails in a major way…I don’t know…maybe that opens it up to an eventual test of $20K. That’s a big fall, but these assets have wide ranges.
Biogen
Biogen is a pretty simple one. This stock exploded higher earlier this month, racing right to the 161.8% extension. Now reseting to the 10-day moving average, I’m keeping an eye on this one and a potential rotation back over $391 today.
That would open up $400-plus. A close below $375 and Biogen may need more time.
360 DigiTech
Not typically my go-to type of name, but QFIN has been a big-time trend stock over the last five to six weeks. The trend will eventually fail, but I liked this one around $40 late on Monday.
Let’s see if we can get a nice bounce today or an inside day followed by “and-up” on Wednesday. That could put $45 back in play.
Keep your risk right with this one though. It wouldn’t be weird to see a break of $39.91 (Monday’s low) and a flush down to the 21-day moving average and that gap-fill near $36.
Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.