themarketzone
Long

Biotech tests very important support zone

NASDAQ:IBB   ISHARES NASDAQ BIOTECHNOLOGY INDEX FUND
The Biotech bubble bursting hits Nasdaq and makes it the weaker link in the indices chain.
It all began when $IBB broke below 360$, closing below its Fast SMA line, providing the bearish signal by breaking down the weekly uptrend line (see point 1)
August's declines lead $IBB to re-test another weekly uptrend line and the 300$ support zone - This created a rally back towards 360$ that ended when the price was rejected by the 360 structure and the Fast SMA line that flipped roles to resistance.

Now, three week's later, $IBB is re-testing the 300$ (currently inside the zone). It is also re-testing the same uptrend that helped it during August.

That is a critical zone for Biotech. The next support zone is near 260$ and below it, the 200 weeks MA waits near 230$.

If $IBB will manage to find the necessary support inside 280-300$ again, it could lead to a rally towards its 50 weeks MA line that should turn to resistance now.
A close above 300$ could be a bullish confirmation signal that we are heading there.

Follow me on TradingView
Follow my blog: http://marketzone.tumblr.com/
Subscribe to my newsletters: http://goo.gl/psNTqg
Comment: $IBB reached target level
:) I'm not jumping in.. but I have to admit that I'm interested. Will look for smaller time frames to pick up some clues
Reply
You're one brave...trader. :D
+1 Reply
Selling volatility with some OTM puts/ Put spreads.. could work out nicely
Reply
IvanLabrie PRO themarketzone
Always interesting with big volatility moves.
Volatility is more cyclical than price, in general...wonder if using a profile chart would help predict it.
I'll study it.
+1 Reply
Let me know
Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out