A popular biotech ETF has rallied past a previous closing high, and with only one resistance level left to overcome, an upside move in excess of 11% above current levels could be coming soon.
Shares of the Biotech HOLDRs Trust (BBH) have rallied again this week and broke out above the prior March 22, 2010 closing high of $106.99, finishing at $107.92 on Monday, April 11.
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The rise in BBH was lead by shares of Biogen Idec Inc (BIIB), which gained almost 7% in heavy trading on Monday.
Biogen released positive Phase III clinical data for its multiple sclerosis drug candidate BG-12 that showed it helped lower the rate of relapse in certain MS patients. Biogen is expected to release data from a second Phase III trial for the drug during the second half of the year.
Monday’s advance is a breakout for BBH and this widely traded ETF should move considerably higher over coming weeks. (Read more about trading breakouts here.)
Initial resistance is at $112.68, and this is the short-term target for the ETF. If this level is broken to the upside, look for shares to reach $120.26.
By Frank Kollar of FibTimer.com
