The iShares Nasdaq Biotechnology ETF (IBB) is trading in range that ultimately needs to be resolved. The outcome is either falling dramatically below $240 or striking the $343 level before doing a retest of the prior high around $400.
Already, IBB has managed to resist falling below the ascending $218.37 level. This is in defiance of our belief that a highly volatile sector and fund should retest the extreme downside target of $133.60. Those wanting to have exposure to the biotech sector but unwilling to take on the individual risk should consider the prospects of this ETF.