With no changes to any of the iShares models, we take a look at the iShares Biotechnology ETF (IBB).
There are no changes to any of the iShares models this week. As we discussed in last Thursday’s report, we have recently seen significant improvement in biotechnology and healthcare, which now have the two highest score directions out of all 134 groups in the Asset Class Group Scores. Investors interested in allocating towards this strength may wish to consider the iShares Biotechnology ETF (IBB). IBB currently has a near-perfect 5.67 fund score and a positive 4.78 score direction. On its default chart, IBB has completed two consecutive buy signals and reached a new multi-year high last month.
The fund currently sits in heavily overbought territory, with a weekly overbought/oversold (OBOS) reading of 72%, so those looking to add exposure may be best served to look for a pullback into the upper $160s or wait for prices to normalize around current levels. IBB has most recently found support at $166. Year-to-date (through 12/24) IBB has gained 31% on a price return basis.
