Biotechnology has been one of the stronger sectors this year. It’s benefited from the combination of Covid treatment hopes (vaccines + therapeutics), and the macro backdrop (low rates/negative GDP).
As we highlighted earlier in the month, the iShares Nasdaq Biotechnology Index ETF broke out to new highs in late June and has been holding its ground above those...
Everyone’s attention is focused on today’s strong jobs report, but an under-the-radar sector is breaking out: biotechnology.
The iShares Nasdaq Biotechnology Index ETF hit new 52-week highs before the rest of the Nasdaq. And it wasn’t just any old breakout. It was the first move above $130 since mid-2015: a historic push to important long-term levels.
IBB is forming an ascending triangle, which is a continuation pattern after the breakout.
Important to note the 20sma, which has been very supportive in the trend. The is also some support we can see many candlesticks with bottom wicks, meaning the shorts were met with buyers very quickly.
What I see...
+ Prices pulled back from $136 to find support from the rising 10ma
+ Friday's bar painted a bullish engulf-like body within a NR7 on very low volume! This is like a spring that is compressed and getting ready to bounce!
+ RSI is at 61 and has just turned upward
+ MACD is flat in the bullish zone
- MACD is technically below signal line
- $136 is...