Shares of Biotech HOLDRS (AMEX: BBH)
Hold Near Support Says Market Timer Frank Kollar
October 21, 2009 (FinancialWire) (By Frank Kollar)
Shares of Biotech HOLDRS (AMEX: BBH) fell dramatically
on Tuesday, Oct 20, and are nearing a support level that
cannot be broken if the advance is to continue.
Biotech HOLDRS reached a rally high in early August and
has since been trading sideways, with ever lower highs
in two rally attempts. Biotech HOLDRS has also had several
higher daily lows. This creates a pennant pattern with
a declining resistance line and rising support line.
Typically, pennants resolve to the original direction
of the trend, in this case to the upside. But Tuesday’s
declines take shares close to that rising support line.
A close below $98.00 a share would likely result in continued
declines in coming weeks. If support holds, we could then
look for another test of the prior rally highs.
The Fibtimer.com (http://www.fibtimer.com)
ETF Timing Strategy holds a position in Biotech HOLDRS
.
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.
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.
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