Biotech Tests Important Resistance
03/14/2013 7:00 am EST
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.
A decisive close and then continued upside would confirm the current rally and forecast even higher highs ahead.
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