Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

Technical Analysts See Bullish Signs for Biotech ETFs

6/06/2014 by

W1siziisijiwmtqvmtavmjgvmtuvmzkvmdivndi2l2zpbguixsxbinailcj0ahvtyiisijywmhg0mdbcdtawm2uixv0

After a sharp sell-off in March and languish trading through May, the biotechnology sector and related exchange traded funds are looking to break out.

The iShares Nasdaq Biotechnology ETF, which tracks biotech and pharma stocks on the Nasdaq, fell 9.6% over the past three months, but the ETF is up 1.6% over the past week and 6.3% higher over the last month. Last week, IBB broke above its 50-day moving average.

Ed Ponsi, managing direction of Barchetta Capital Mangement, pointed out that IBB’s break above its short-term resistance level, the first time since March, was a bullish indicator, reports Lee Brodie for CNBC.

Furthermore, Ponsi noted that IBB broke out of a symmetrical triangle pattern that has formed for weeks. The symmetrical triangle pattern is recognized by its distinct triangle shape formed by two converging trendlines that connect recent peaks and troughs.

IBB’s symmetrical triangle pattern showed its trendlines converged around $231 per share – IBB currently trades around $245 per share. The two trendlines act as barriers on prices increases and decreases, but when the price breaches one of these lines, a sharp move typically follows. Currently, the ETF is breaking out on the bullish side.

Looking at individual picks, Ponsi argued that biotech firms like Celgene and big pharma Regeneron are also showing bullish chart patterns.

“That would mean the monster sell-off has created some terrific buying opportunities,” Mad Money’s Cramer noted in the article. “I think Ponsi is dead right.”

This article has been extracted from http://www.etftrends.com, please click on this link to read the article in full http://www.etftrends.com/2014/06/technical-analysts-see-bullish-signs-for-biotech-etfs/

Montash is a multi-award winning, global IT recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Scientific Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmdqvmjqvmtqvmzqvmzuvnjg3l3nodxr0zxjzdg9ja182mdq2otc5nziuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

What Does A Snap Election Mean For Recruitment?

2017-04-25 08:00:00 +0100

On Tuesday 18th April, Prime Minister Theresa May called a snap general election for 8th June, taking the nation by surprise. Rather than waiting until 2020, voters will now be casting their ballots in a matter of weeks. The hope for the government is that a Tory victory give the prime minister a strong mandate in parliament as Brexit negotiations begin. This sudden decision has been embraced by many in the recruitment industry due to the anticipated st...

W1siziisijiwmtcvmdqvmtkvmtuvndivntgvnjcyl3nodxr0zxjzdg9ja18xmja3mdi1ndcuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

Evolve or Die: The Importance of Being Agile

2017-04-19 18:00:00 +0100

In the high-speed world of IT, agility is essential if you want to stay on top. Over the last 20 years, Montash Managing Director Roy Dungworth has experienced many changes in the industry. But two things never change - the need for business agility and the importance of people. Roy shares his insights after two decades in the industry. The pace of the IT industry increases every year. The way people buy or consume information today is having an enormou...