BIOTECH INDEX (BTK) RALLIES ABOVE 200-DAY MOVING AVERAGE

John Murphy
by John Murphy,
Chief Technical Analyst, StockCharts.com

BTK INDEX TRADES ABOVE 200-DAY INTRA-DAY... Several biotech stocks: DNA, IDPH, MLNM, and MEDI, to name a few, are supporting a rally in the Biotechnology Index (BTK) which is currently trading above its 200-day Moving average intra-day. A close above this resistance level would be positive for the BTK and would help set the stage for a retest of its December highs (see shaded circle). IDEC Pharmaceuticals (chart #2) is gapping up above its 50-day on higher volume. IDPH has been stuck in a neutral trading range since December (see shaded square); therefore, a close above the $36 level would constitute a positive breakout. The next level of resistance for IDPH is near its 200-day. Genentech (DNA) (chart #3) is up over 10% intra-day and is trading above its prior November and August peaks (see shaded circles). Medimune (MEDI) (chart #4) has surpassed its resistance near $30 and is making a new 6-month high.

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John Murphy
About The Author:

John is a renowned author in the investment field and former technical analyst for CNBC. Considered the father of intermarket technical analysis, his books include “Technical Analysis of the Financial Markets” and “Trading with Intermarket Analysis”. Learn More 

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