Biotech Sector Chart
The broad stock market’s two day rally saw biotech stocks surge higher. In particular, the reversal in Biotech Sector ETFs BBH and XBI looks to be bullish.
As you can see in today’s chart, the bullish reversal came from a strong support zone. And Biotech is beginning to out-perform the S&P 500.
The market has been volatile so adding exposure should be done with hedges and/or stops. A move below the recent lows would negate the signal.
I think that both Biotech ETFs (BBH and XBI) are in a good risk versus reward spot.
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
