Shares of the Biotech HOLDRS ETF (BBH) have been climbing steadily higher since reversing from correction lows in early June 2010. How much higher can they go?
Biotech HOLDRS traded above its 50-day moving average on Monday, June 21 before pulling back, yet even as the major indexes ended in the red, Biotech HOLDRS closed with an almost 1% gain.
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The target for Biotech HOLDRS in this advance is $99.22 a share. This level is the 61.8% retracement of the entire March-to-June decline for Biotech HOLDRS, and strong resistance should be expected.
Should Biotech HOLDRS close above $99.22, traders can look for an advance that should test this ETF’s prior March highs, above $107 a share.
By Frank Kollar of FibTimer.com
