Chart of the Day - Monday, June 24, 2024

🏆 Today’s Chart of the Day was shared by Keith Kern (@kkernttb).

• Biotech has been surprisingly strong recently. The Biotech ETF ($IBB) closed higher for the third straight day, while the S&P 500 closed lower for the third straight day.

• Keith points out that $IBB gapped above a four-month downtrend line today (blue). It has formed a solid Inverted Head & Shoulders pattern over the past six months, and it's testing the neckline at $140.

• If $IBB clears the neckline of this bullish pattern at $140, it will open the gates to new multi-year highs. Biotech has persistently lagged since 2015, but it's starting to show meaningful improvement.

The takeaway: Biotech ($IBB) has ripped higher over the past three days, while the S&P 500 has pulled back. Biotech has been a headache for nearly a decade but, reclaiming $140 would be a big step in the right direction.