Biotechs Flash the Green Light

Biotech stocks were on fire last year, but then they topped out at the end of February and started to decline. By mid-April, the iShares Nasdaq Biotechnology ETF (IBB) lost 19% from its February high. Since then, the sector has been building a base.

That base was finally completed yesterday, and now the biotechs are breaking out. On Tuesday, IBB reached its highest level in nearly two months. The April 15 low (arrow) occurred at a key Fibonacci level, resulting in a 61.8% pullback of the rally that spanned from June 2013 (A) until February of this year (B)....323 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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