As we highlighted earlier in the month, the iShares Nasdaq Biotechnology Index broke out to new highs in late June and has been holding its ground above those peaks. Today it chopped back down to test $135, which has emerged as support since our last post. (That $135 line is also near intraday peaks a few times in May.)
The other big line is the 50-day ( ). IBB recently bounced there, and now prices are revisiting it.
This idea isn’t super fancy , but these are classic patterns in a sector that could make sense fundamentally. Biotechs are a long-term secular growth story. Long-term trend followers may like the risk/reward near the confluence of these flat lines and the 50day .