Biotechs are on the move…
Check out the biotechs group in the chart above (the biotech ETF is ticker IBB). It is quietly starting to set up and getting ready to make a move.
On Wednesday 5/31 it found support at the 200dma and reversed off of it on heavy volume, closing near the highs of the day. It proceeded to rally the rest of the week and broke above both the 50dma as well as a short-term descending trend line on Friday.
What initially put the biotech group on the radar was the fact that this week, more stocks from this group started passing our growth stock scans on ChartYourTrade MRI. What I’ve noticed is that as more stocks from a particular industry begin passing these scans, the more likely a group move becomes.
We jumped from only 1 biotech stock passing last week to 3 passing this week. They include NVO, SUPN, and OSUR. A quick look at each of these shows strong demand building.
Keep an eye out on these and other stocks in Biotech.
