Biotech caught a bid Friday after Biogen announced positive results from a study on a drug aimed at treating early Alzheimer’s disease, its shares rose nearly 20 percent. The iShares Nasdaq Biotechnology ETF (IBB) surged 3.8 percent, bringing its YTD gains up to nearly 9 percent, outperformed the S&P by a wide margin. Now the question is whether the rally has more legs? Below is 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.
Chart 1.1 – iShares Nasdaq Biotechnology ETF (weekly)
Our “U.S. Market Trading Map” painted IBB bars in green (buy) – see area ‘A’ in the chart. After a strong run of outperformance since early 2016, IBB peaked in early 2018 and rolled over. The early February correction tested and respected support at the 38.2% Fibonacci retracement. Last week’s massive rally pushed the ETF…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.