White Hot Biotech Sector Could Be Hitting Resistance

Published 06/11/2014, 09:04 AM
Updated 07/09/2023, 06:31 AM

IBB Weekly Chart

Did Biotech hit a long-term high on the week of February the 28th? I feel the jury is still out on this question but we could find out a good deal more in the next week.

Biotech peaked around the first of March and fell for six weeks (declining around 20%) then it reversed the decline, moving higher since April 15th. The rally has recovered 61% of the decline and now has IBB (iShares Nasdaq Biotech (NASDAQ:IBB)) kissing the underside of a key support line, now the resistance at (1) in the chart above.

The inset chart reflects how well IBB has done over the past 10 years and how sharp the rally over the past three years has been.....very impressive indeed!

In my humble opinion, how IBB handles this first kiss could tell us a ton about the direction of this hot sector in the near term, which can from time to time influence the broad markets.

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