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Biotech ETF Creating Large Reversal Pattern On Historic Momentum

Published 04/01/2015, 12:06 AM
Updated 07/09/2023, 06:31 AM

IBB Monthly 2001-Present

Yesterday marked the 126th Anniversary of the Eiffel Tower. In honor of that, I thought I would look at the hottest sector in the US and see what could be found.

iShares NASDAQ Biotech ETF (NASDAQ:IBB) on a "Monthly” basis could be creating the largest reversal pattern (bearish wick) in its history. Even if its not #1, it's a biggie. This potential reversal pattern is unfolding at a steep rising resistance line. In addition, it's taking place at a long-term Fibonacci extension level. As you can see, monthly momentum is at level not seen in the history of IBB.

Since this is a monthly pattern, odds are high it could take a while to see if this is the mother of all bearish wicks or not.

Remember, hardly any sector on the planet is hotter than Biotech right now, and what takes place here could send a message to a few indices, sectors and stocks!

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