August 6, 2010
Shares of the ETF Biotech HOLDRS (AMEX: BBH) have been moving higher since making what looks like a solid double bottom with lows in early June and again in early July.
Biotech HOLDRS has risen 12.6% since those lows and is now well above its 50-day moving average.
Shares have also closed well above their prior June 21 rally high and closed on Thursday, August 5 about 1% below both their 200-day moving average as well as the 50% retracement level for the entire March to June correction at $96.63.
A close above $96.63 would likely result in a run to the $99.22 level. A close above $99.22 would likely result in a run for the prior rally highs at $107 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS.
Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in Biotech HOLDRS.