Chris Kimble, of Kimble Charting Solutions, takes a technical look at this biotech ETF now testing the 423% Fibonacci extension level as support and suggests it may be worth paying attention to leadership, since what the ETF does next at this level could influence the market in both directions.
When it comes to upside leadership, few can compete with the Biotech sector.
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IBB hit resistance line (1) on March 20 and created a reversal pattern at (2). Since then IBB has traded sideways and may have created a double top at the (2) reversal level.
Now IBB is testing Fibonacci 423% extension level as support Wednesday morning at (3).
It might be worth paying close attention to leadership, because what IBB does at (3) could influence the market in both directions.
By Chris Kimble, Founder, Kimble Charting Solutions
