Healthcare stocks come back into the spotlight following report that Senate Majority Leader Mitch McConnell plans to bring a last-ditch bill to repeal and replace big parts of Obamacare to a vote in the Senate next week. The iShares Nasdaq Biotechnology ETF (IBB) rose 0.85 percent to 332.75. The ETF has risen more than 25 percent this year while the S&P up about 12 percent. Now the question is ‘will the rally has more legs?’ Below it an update look at a trade in IBB.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.1 – iShares Nasdaq Biotechnology ETF (weekly)
Our “U.S. Market Trading Map” painted IBB bars in bright green (strong buy). The weekly chart of IBB reveals a well define bullish flag formation, which represents the digestion period in the aftermath of the late August massive rally. For starters, bullish flag or bull flag is a bullish trend continuation chart pattern indicating the continuation of an existing bullish trend after a small pause. A unique characteristic of the bull flag…Click here to read more.
You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.
This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?
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