From a technical view, the iShares Nasdaq Biotech ETF ()has posted a reversal candlestick pattern on a weekly chart while biotechnology sector is in a parabolic rise. Regarding technical indicators, the weekly RSI has validated a bearish divergence in its overbought area. On a relative basis against the iShares Core S&P 500 ETF (), the iShares Nasdaq Biotechnology Index Fund is reversing down and looks set for a drop.
Trading strategy: Short Sell @ $253.25 - Stop loss @ $264 - Target @ $215.
Nasdaq Biotechnology Index