Shares of Biotech HOLDRS (AMEX: BBH)
at Support Says Market Timer Frank Kollar
May 18, 2010 (FinancialWire) (By Frank Kollar)
Shares of the ETF Biotech HOLDRS (AMEX: BBH) have reached
support levels that may lead to higher highs in coming
weeks.
Biotech HOLDRS closed at $92.67 on Monday, May 17, after
reaching $91.18 intra-day. This intra-day low is the 50%
retracement of the entire March 2009 to March 2010 advance.
On May 6 and May 7, the mini-crash days of two weeks ago,
the intra-day lows were below this support level but on
both days Biotech HOLDRS was able to rally and close above
it.
Considering current market conditions, with high volatility
each day, this trade has increased risk, but with a buy
stop below $88.00, the 61.8% retracement support level,
to manage risk on the downside, this is trade with bullish
potential.
On the upside, Biotech HOLDRS could reach $98.58 to $100.71
a share in a short-covering rally. Any rally though could
have a limited time-frame as the stock market in general
may have more downside ahead.
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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for informational purposes and is not a solicitation, or an offer to buy or sell
any security. Opinions are based on historical research and data believed reliable,
but there is no guarantee that future results will be profitable. |
