Biotech HOLDRS (AMEX: BBH) Pulls Back At Resistance Says Market Timer Frank Kollar
May 7, 2007 (FinancialWire) (By Frank Kollar)
The exchange-traded fund Biotech HOLDRS (AMEX: BBH) has rallied along with the rest of the stock market, but this week reached important Fib resistance and pulled back. With core positions in Genentech (NYSE: DNA), Amgen (NASDAQ: AMGN) and Biogen (NASDAQ: BIIB), what happens next?
Biotech HOLDRS reached the $189.00 to $190.00 levels and promptly sold off on Thursday and Friday. This is the Fib 61.8% retracement level and typical you will see profit taking there. What happens next is critical to the biotech rally though.
If Biotech HOLDRS can make a decisive close above $190 in coming days, expect shares to quickly reach $193.60. A close above $193.60 would forecast a run to the prior rally highs just below $200.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS .
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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