Biotech Tests Important Resistance

03/14/2013 7:00 am EST

Focus: ETFs

While a top in a bull rally cannot be forecasted ahead of time, there are levels that traders need to be watching, writes Frank Kollar of Fibtimer.com.

One level is now being tested by Market Vectors Biotech (BBH).

BBH spent a month at the $58.53 resistance level before blasting through in the end of February.

BBH is now at what we see as critical resistance, $61.00 to $62.00 a share.

A decisive close and then continued upside would confirm the current rally and forecast even higher highs ahead.

chart
Chart Courtesy of StockCharts.com
Click to Enlarge

But if BBH begins a pullback, this is where we expect to see it start. A reversal day or inability to push well above $62.00 a share in the next week would be a bearish sign for this ETF and the entire sector.

That said, we are and have been long BBH and continue to hold a bullish position. If we make a decisive close above current levels, we could see considerably higher highs ahead.

As of this writing, BBH is at $63.38, just fractionally above resistance.

By Frank Kollar, Editor, Fibtimer.com

Related Articles on ETFs

Keyword Image
The Omen
12/07/2017 10:50 am EST

The probability of an equity market correction over the next few months is slim to none, so there co...