IBB – Biotech ETF (iShares Nasdaq Biotechnology Index ETF)
The Trade Ideas Trade of the Week for 4th April 2016
Holly has identified many setups in the biotech space on the Trend Change Lubricant Top List scan. These are charts that are showing a high probability of turning back up and making higher lows, thus breaking the prior down trends. One of the difficulties in holding a biotech stock overnight is the added risk of bad news in the pipeline of a company’s product. But there is still a way to participate in biotech without having to worry about a single stock collapse overnight; trade the biotech ETF that is IBB. The Trade of the Week will be diversified by many holdings in the IBB Biotech ETF. (Stock Twits Ticker $IBB)
This trade is now active at the entry price of 270 for this Nasdaq Biotech ETF. The downside level to use for a stop is suggested to be 257. Please size your shares accordingly. Look at the distance down to 257 and consider that your worst case scenario then calculate your risk accordingly.
The near term target for this trade on IBB Nasdaq Biotech ETF should be around 325 in the not too distant future. Good luck and trade accordingly.
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Please remember that Trade Ideas does not suggest day trading this type of alert. The idea behind the Trade of the Week is to give our customers opportunities that they may be able to stay in for an extended period of time. Please use proper risk management when making investment decisions.