Biotech: two years of basing, absorbing overhead supply, threatening to break resistance, price above the anchored VWAP from all-time highs, new 52-week highs. $IBB pic.twitter.com/zhB8YL09Fi
— Alfonso Depablos (@AlfCharts) January 9, 2024
🏆 Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts).
- The iShares Biotech ETF ($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.