Watch for a breakout in Biotech $IBB – February 15, 2024
This is Scott at StockMarketMentor.com and your Chart of the Day. I want to take a look at biotech, this is the IBB iShares Biotech ETF ( NASDAQ: IBB ) is just one of many sectors that are working right now in this market.
We sent out a note listing all the different sectors that we believe you want to be involved in this market this morning to Stock Market Mentors members. There are a ton of areas of this market that are either looking good or working well right now to give you some long exposure.
I want to highlight Biotech ( NASDAQ: IBB ) tonight and just notice this pattern that it’s in right now. I see a little bit of a wedge here just in the short-term price action in the past month or so. A clear downward-sloping trendline, and then we have a bit of a wedge here with some wicks coming down to finding support.
We can see today that the Biotech ETF ( NASDAQ: IBB ) popped out of this bit of consolidation. I have a feeling, if this is going to continue it may actually turn into a bigger move because we have this longer-term resistance zone, right around this 140.00 level, just underneath.
I think if Biotech ( NASDAQ: IBB ) can actually come up and retest level and break out there, you’re going to be long some IBB ( NASDAQ: IBB ). You could probably get a little started here close to the moving averages with a small position, and let’s say a wide stop. We’ll give it a wide one down to 131.00. Try some in and around here just to get some started.
If it breaks out above there, then I think you are going to try and ride this trend to see if we can test some of these previous highs from back here in 2021, like around 155.00. So I am looking for some moves to follow here in Biotech ( NASDAQ: IBB ).
This could take a little while to play out, but this is what I’m looking at here. And if you are able to grab onto one of these trends you can pretty much sit back and let it work.
Free Chart