Chart of the Day - Tuesday, January 9, 2024

🏆 Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts).

• The iShares Biotech ETF ($IBB) broke out to its highest level in nearly two years yesterday after clearing resistance around $137.

• This level roughly coincides with the AVWAP from the 2021 peak (blue), indicating that the average buyer is no longer underwater.

• Investors have largely abandoned Biotech due to its underperformance over the past decade, but it’s regaining momentum as it emerges from a two-year base.

• The takeaway: Biotech ($IBB) looks poised for further upside after clearing a major hurdle this week.