The Biotech ETF is breaking out of a bullish pattern
The way markets go, you sometimes see something, react to something, and have that something go in the opposite direction. That is what happened after I’d published this now public NFTRH+ update on the Biotech ETF, IBB.
The original target based on the original (lower, black) neckline was a conservative 147 per the daily and weekly charts included in the original update. But IBB failed that neckline after popping above it and establishing a touch point for a new one. It dropped again, found support at the SMA 50 and rammed higher, conclusively breaking the bullish pattern. The new (green) neckline measures the pattern to 158. I not only held the pullback shenanigans (pending a hold of the 50 day average), but added a second position.
As a side note, Biotech is one of those sectors that tends to favor declining long-term Treasury yields and a disinflationary backdrop. That was also projected in the update:
As a side note, Biotech historically favors declining interest rates, which appears to be the interim macro backdrop at this time.
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