It’s been a long time coming for the Biotech sector that has for me included some stops and starts in AMGN, GILD and IBB itself. Some profits, some losses. But back in April the chart of ABBV said “hey Gary, highlight this stock’s weekly chart pattern and NFTRH+ it for subscribers”. I did, and I also bought it back then. It’s been a great hold since.
Normally, overbought charts like this wig me out but the little voice in my head demanding that it’s always a good day for profit taking is so far held at bay. That is because we’ve got significantly higher targets for ABBV, and today’s IBB break helps the cause of patience.
As for IBB, which is probably the safest way to be long Biotech, it hit a new cycle high today, before recoiling a bit. It’s getting volume.
If the break to a new recovery high holds up, IBB targets the 350 area.
A forward warning here; Biotech is not well correlated to rising interest rates, so if IBB gets to 350 and rates start to rise as I expect, it would be time to realize profits (if not done sooner).
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