Biotech HOLDRS (AMEX: BBH) Breaks Says Out Market Timer Frank Kollar
March 4, 2008 (FinancialWire) (By Frank Kollar)
Back on February 19th, we wrote that shares of the exchange-traded fund Biotech HOLDRS (AMEX: BBH) were trading in a pennant pattern since early this year.
We wrote, “Pennant patterns tell us that traders are indecisive and are buying and selling shares of BBH in an ever-tighter pattern that must eventually break. When it does, it will give us guidance as to the future direction of this widely traded ETF. As the pennant tightens, resistance is currently at about $166.00 and support is at about $163. A decisive break of these levels will tell traders where this ETF will likely trade in coming days and weeks.”
On February 25 th BBH broke out, closing at $166.96. On Monday, March 3 rd, BBH continued its rally reaching $172.80 at the close. BBH will hit resistance at $173.99. A close above will take BBH all the way to $179.16 in short order.
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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