The biotechnology industry has apparently completed a transition from accumulation to consolidation to distribution. A confluence of support levels around $125 for the iShares Nasdaq Biotechnology ETF (IBB) give a clear potential downside target as further weakness appears likely.
Biotechs are a fascinating group from a technical perspective because the chart looks very different than the average stock for the last eight months. Biotechs actually topped out in December of 2019, while most stocks topped in January or February 2020. A rebound into February created a double top pattern before the IBB sold off to reach a low around March 16th, a week before the broader market indexes.
You can read more over at seeitmarket.com.
RR#6,
Dave
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