Biotech Has Bottomed, Bull Market in full Swing. $IBB $IWM $SPY

I believe that biotech has bottomed. After a 18 Month Drawdown from the Top, the IBB has reclaimed the 200 Day Moving Average and Held it. That is very important going forward as the 200 day MA is used by institutions as a gauge of support and buying opportunities. If the RSI begins to break out on this weekly Time Frame I believe that IBB will see targets of 340 in the coming months. Take a look at the other bottoming charts in the biotech and drug sector, most of which the IBB is comprised of below.

BIIB – Reclaimed the 200 Day BEFORE the election and held the 200 day. Looking for the gap fill to $380.

REGN – Again reclaimed the 200 Day because of the election rally and has held this moving average. Above this price and the sky is clear. Price target of $500 first.

VRTX – Reclaimed the 200 day on the election news and needs to close above the MA. Looking for a move up to $120.

AGN – I REALLY like this chart. As you can see It has faded off the election news because Tepper and Icahn sold much of their stake. However, it has put in another low to shake out the remaining weak longs and has a hard reversal. If IBB continues higher I am looking for AGN to catch up and get back above $200 then over $224 is blast off.

GILD – Looks as if it is putting in a long term bottom down over 25% for the year. I expect a move back to $85 in the near term.

MYL – Looks like it is putting in a long term bottom around 35. I explect this to get back to the 200 Day and close above for a move into the mid 50’s.




One response to “Biotech Has Bottomed, Bull Market in full Swing. $IBB $IWM $SPY

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