From the desk of Steve Strazza @Sstrazza
A few week's ago we profiled the strength in Biotech and highlighted the Genomics space as one of the top-performing industry groups. We said we were looking for some consolidation in these areas in the coming weeks and that if and when prices resolved higher these would be areas we'd look to for long opportunities.
It appears the weight of the evidence has spoken with Biotechs pressing back towards fresh highs after consolidating in a tight flag for over a month.
In this post, we'll highlight our top-down approach to look into the Biotech space and offer some trade ideas. Then we'll drill further down into Genomics, provide an update on what we're seeing there, and share some setups in holdings of the ARK Genomic Revolution ETF $ARKG.
Here's the iShares Nasdaq Biotech ETF $IBB.
As long as price is above its 2015 highs near 134, we don't want to bet against this breakout. Sure, we'd like to see momentum register an overbought reading and finally confirm these new highs, but price is always the final arbiter of truth... and right now, it's pointing higher.
Now let's look at some names that are also resolving out of major bases similar to IBB while exhibiting relative strength vs the index.
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