iShares Nasdaq Biotechnology ETF (IBB)

A request came from a Trendy Stock Charts member to look at the charts for an index from the biotechnology sector. That index would be the iShares Nasdaq Biotechnology ETF (IBB).

If any chart patterns can be identified for the index, those patterns are a good starting point for stock charts of individual companies. Most companies tend to follow the general direction of the index. Some companies will outperform while other companies lag. Investing in the index of a hot sector can help eliminate the risk of purchasing the lagging companies.

So let's start the chart review for the iShares Nasdaq Biotechnology ETF (IBB) and see what patterns may be brewing.

IBB Cup Pattern

This isn't the first time I've looked for patterns on the iShares Nasdaq Biotechnology ETF (IBB). My last feature length article for the iShares Nasdaq Biotechnology ETF (IBB) was in January 2018. Here is a quick link back to that article.

"1/12/2018 – Happy 2018 for the iShares NASDAQ Biotechnology ETF?"

In the January article I outlined a Cup Pattern that appeared to be developing. However not too long after my article the pattern got detoured a little bit. After a 3 month consolidation period the index is once again though starting to advance.

I do not think I would refer to this as a Cup Pattern any longer.

The gray shaded box is the short-term target for the index's current uptrend and continued development of the "cup-like" pattern. But after the detour on the Cup Pattern, The Elliott wave pattern has clarified to some extent. I moved the Anchor Points on the black Fibonacci Extension Tool to reflect the clarification I see. The new chart looks like this.…….

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I review long-term bullish price objectives for the iShares Nasdaq Biotechnology ETF (IBB) and the patterns that will help the index reach those price objectives.

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