IBB Rising Megaphone

Published 05/09/2017, 11:25 AM
Updated 07/09/2023, 06:31 AM
IBB
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iShares Nasdaq Biotechnology

iShares Nasdaq Biotechnology (NASDAQ:IBB) needs to correct to the bottom of its red rising megaphone. But it didn’t complete a proper head and shoulders top inside the formation before breaking out.

That would often mean the formation is going to extend to form the blue rising megaphone, which needs a new all-time high to confirm.

IBB seems to be forming a rising megaphone off its January 2017 low (orange). It needs a new high to confirm. That could be a partial retrace of the move off the July 2015 high before a collapse to the red rising megaphone bottom (green scenario). Or it could complete and extend to form the navy blue rising megaphone (purple scenario) and gray rising megaphone (pink scenario) to get to a new all-time high.

The purple scenario would imply that IBB is setting up a long-term megaphone across roughly 300.

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