Biotech Sector Update – October 1, 2017 …

One of the best looking sectors heading into the start of Q4 this week is the biotech’s.

NASDQ Biotech Index Fund (IBB) – Monthly Chart

Biotechs are pushing up into monthly ATR resistance and I am not convinced that we are headed back-up to retest the prior all-time high.

NASDQ Biotech Index Fund (IBB) – Weekly Chart

 

You can see on the weekly chart, that price has pushed right into the SLOT resistance zone, and has actually hit the 61.8% resistance level.  The weekly relative strength vs the SPY indicator is not quite breaking above prior pivot highs … a move above those levels will show me that we could continue higher here for the remainder of 2017.

NASDQ Biotech Index Fund (IBB) – Daily Chart

You won’t find a nicer bull-flag than the IBB daily chart’s current pattern however … the trend strength histogram has consolidated/pulled-back into the Chop Zone and an expansion phase move higher is looking very likely here soon.

NASDQ Biotech Index Fund (IBB) – 195 MInute Chart

You can see that the late week price action actually began breaking the bull-flag on the 195-min chart … Friday was the end of Q3 though, so I would be careful assuming that the possible window dressing will continue first thing next week – It could, but don’t hit the “buy-market” order button at 9:30am.

IBB Components

AMGN is the largest biotech by market cap, and it has some nice looking longer-dated charts.  CNBC’s Carter Worth has highlighted AMGN recently on the weekly Options Action program … he was looking at the long-dated charts and calling for a break-out move higher.

I like to trade the 3x leveraged Biotech bull ETF (LABU) when trading biotechs intra-day or at the beginning of possible expansion thrusts higher …. next week could be a good week to keep that symbol front and center on your monitors.

Cheers … Leaf_West

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