Biotech taking a breather but it's well-deserved; may be next good opportunity after consolidation

Biotech as represented by the $BTK chart might look like it's losing momentum on the daily chart - and it is, if you look at that (at right) ... but the bigger picture on the weekly chart (below) shows it's just been tagging the high levels of 2008! The weekly chart also shows good momentum on the Stoch RSI. So whether you call it a cup and handle, or a wave 3 in EW terms for the next movement up, there's a good chance that it's only going into a consolidation or perhaps corrective phase that will set the stage for its next move up.

Obviously there's chart support at $700 in the BTK chart, if it goes that low; although I'd be surprised to see it pull back deeper than $775 (based on chart pattern and rising 20-day moving average (DMA) which should be there soon). There's also that 50 DMA, of course, already about $700 and rising. Given biotech's momentum, it's also reasonable to look for the 13-day exponential moving average (currently at 820) to provide near-term support.