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Look for Shares of iShares Nasdaq Biotechnology Index to Potentially Pullback after Yesterday's 1.58% Rise

By Nick Russo

iShares Nasdaq Biotechnology Index (AMEX:IBB) traded in a range yesterday that spanned from a low of $298.01 to a high of $302.16. Yesterday, the shares gained 1.6%, which took the trading range above the 3-day high of $299.84 on volume of 785,000 shares. Often times after large one-day gains, short term traders will seek to take profits and, as such, investors should be cautious.

Over the past year, iShares Nasdaq Biotechnology Index has traded in a range of $240.03 to $400.79 and is now at $301.53, 26% above that low. Over the past week, the 200-day moving average (MA) has gone down 0.9% while the 50-day MA has remained constant.

SmarTrend recommended that subscribers consider buying shares of iShares Nasdaq Biotechnology Index on January 9th, 2017 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $282.60. Since that recommendation, shares of iShares Nasdaq Biotechnology Index have risen 5.2%. We continue to monitor IBB for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: rebounders amex:ibb ishares nasdaq biotechnology index

Ticker(s): IBB