Trading Strategy – iShares Nasdaq Biotechnology ETF

 
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?

Subscribe to CEM News to receive more in-depth research from Capital Essence.

P.S. Take advantage of the 30 days special trial [new member only]. Join a small group of elite traders and receiving these daily trading ideas by click here to subscribe.