{"id":4925,"date":"2017-03-16T04:35:48","date_gmt":"2017-03-16T08:35:48","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=4925"},"modified":"2017-03-22T03:37:20","modified_gmt":"2017-03-22T07:37:20","slug":"biotech-etfs-swing-trade-breakouts","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/biotech-etfs-swing-trade-breakouts\/","title":{"rendered":"3 Biotech ETFs For Swing Trade Breakout Entry Now"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/biotech-etfs-swing-trade-breakouts\/#The_biotech_sector_is_waking_up_again_and_may_soon_present_you_with_some_excellent_trading_opportunities\" >The biotech sector is waking up again and may soon present you with some excellent trading opportunities.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/biotech-etfs-swing-trade-breakouts\/#iShares_NASDAQ_Biotechnology_ETF_IBB\" >iShares NASDAQ Biotechnology ETF ($IBB)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/biotech-etfs-swing-trade-breakouts\/#SPDR_S_P_Biotech_ETF_XBI\" >SPDR S&amp;P Biotech ETF ($XBI)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/biotech-etfs-swing-trade-breakouts\/#Direxion_S_P_Biotech_3x_ETF_LABU\" >Direxion S&amp;P Biotech 3x ETF ($LABU)<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_biotech_sector_is_waking_up_again_and_may_soon_present_you_with_some_excellent_trading_opportunities\"><\/span><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-4926\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2017\/03\/biotech-stocks.jpg\" alt=\"biotech stocks\" width=\"480\" height=\"222\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/03\/biotech-stocks-110x51.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2017\/03\/biotech-stocks-300x139.jpg 300w\" sizes=\"auto, (max-width: 480px) 100vw, 480px\" \/>The biotech sector is waking up again and may soon present you with some excellent trading opportunities.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Continue reading to see the charts and swing trade setups of the\u00a0<strong>best biotech ETFs<\/strong> to put on your radar screen now!<\/p>\n<h3><span class=\"ez-toc-section\" id=\"iShares_NASDAQ_Biotechnology_ETF_IBB\"><\/span><strong>iShares NASDAQ Biotechnology ETF ($IBB)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>About five years ago, iShares NASDAQ Biotechnology ETF ($IBB) kicked off a massive uptrend that lasted 3\u00bd years and led\u00a0to\u00a0a 400% gain.<\/p>\n<p>Because of sector strength, many of the most profitable <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><em>Wagner Daily<\/em> stock picks<\/a>\u00a0during that time were also in the biotech industry.<\/p>\n<p>But even the strongest uptrend doesn&#8217;t\u00a0last forever, and the inevitable correction in $IBB began in mid-2015.<\/p>\n<p>The ETF trended lower for a year, found support, and has been stuck in a choppy, sideways range\u00a0since then.<\/p>\n<p>However, that current\u00a0consolidation pattern has turned into a bullish base that may soon lead to a breakout above the range:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/%7Erick\/\/charts\/2016\/170316IBB.png\" alt=\"$IBB weekly\" title=\"\"><\/p>\n<p>On the chart above, notice the price action of $IBB has been tightening up since the start of 2017.<\/p>\n<p>The price is now living above both the 10 and <span class=\"__postbox-detected-content __postbox-detected-date\">40-week<\/span> moving averages, and the 10-week MA just crossed above the 40-week MA (which is now turning up).<\/p>\n<p>These bullish signs indicate that<strong> $IBB may soon reward astute traders<\/strong> <strong>with a breakout<\/strong> that carries it 13-15% higher from here (next resistance is ~$340).<\/p>\n<p>However, <a href=\"https:\/\/www.morpheustrading.com\/blog\/danger-jumping-the-gun-trading-psychology\/\" target=\"_blank\">be patient<\/a> because the biotech ETF must <em>convincingly<\/em> close above its current resistance level (~$304 area) before a valid buy signal is generated.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SPDR_S_P_Biotech_ETF_XBI\"><\/span><strong>SPDR S&amp;P Biotech ETF ($XBI)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The\u00a0overall chart pattern of $XBI is similar to $IBB, but there a few key differences:<\/p>\n<ol>\n<li>Since its 2016 low, $XBI has been trending <em>slightly<\/em> higher while $IBB has been range-bound (means $XBI has more relative strength).<\/li>\n<li>$XBI has already moved above resistance of its September 2016 high (although <em>not<\/em> convincingly).<\/li>\n<li>$XBI is a few percent closer to its all-time high than $IBB (less resistance).<\/li>\n<\/ol>\n<p>Here is the weekly chart of $XBI for comparison:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/%7Erick\/\/charts\/2016\/170316XBI.png\" alt=\"$XBI DAILY\" title=\"\"><\/p>\n<p>By the way, notice the 10-week MA (teal line) crossed above the 40-week MA (orange line) last September and\u00a0<em>has held above it the entire time.<\/em><\/p>\n<p>That same moving average crossover happened in $IBB last September as well, BUT the 10-week MA fell back below\u00a0the 40-week MA (until two weeks ago).<\/p>\n<p>This subtle difference is another way to confirm the relative strength that $XBI has been showing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Direxion_S_P_Biotech_3x_ETF_LABU\"><\/span><strong>Direxion S&amp;P Biotech 3x ETF ($LABU)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you prefer to trade more &#8220;caffeinated&#8221; ETFs, then the triple leveraged $LABU may be the best biotech ETF for you.<\/p>\n<p>Both $LABU and $XBI track the <a href=\"https:\/\/www.spindices.com\/indices\/equity\/sp-biotechnology-select-industry-index\" target=\"_blank\" rel=\"noopener\">S&amp;P Biotech Index<\/a>, but $LABU moves\u00a0in both directions approx. 300% more than the underlying index.<\/p>\n<p>For example, if S&amp;P Biotech Index rallies 1% today, $LABU will gain about 3%.<\/p>\n<p>If $LABU breaks out above the high of its current range, the 3x leveraged biotech ETF could sprint to the $80 area before running into major resistance:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/%7Erick\/\/charts\/2016\/170316LABU.png\" alt=\"$LABU DAILY\" title=\"\"><\/p>\n<p>A rally from $55 to $80 in $LABU would equate to roughly a 45% gain,\u00a0which is obviously more exciting than the 13-15% profit targets in $IBB and $XBI.<\/p>\n<p>As such, leveraged ETFs can provide an awesome opportunity for traders with small accounts to get maximum &#8220;bang for the buck&#8221; when trading ETFs.<\/p>\n<p>However, make sure you <a href=\"https:\/\/etfdb.com\/leveraged-etfs\/7-mistakes-to-avoid-when-trading-leveraged-etfs\/\" target=\"_blank\" rel=\"noopener\">learn<\/a> about the uniquely inherent risks of leveraged ETFs and how to avoid them.<\/p>\n<p><em>Which biotech ETF to you prefer to trade? Join the discussion by leaving your\u00a0comment below.<\/em><\/p>\n<p><center><script src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\" async=\"\" type=\"text\/javascript\"><\/script><!-- Footer of content --> <ins class=\"adsbygoogle\" style=\"display: inline-block; width: 300px; height: 250px;\" data-ad-client=\"ca-pub-7565144363001883\" data-ad-slot=\"7002222565\"><\/ins><script type=\"text\/javascript\">\/\/ <![CDATA[ (adsbygoogle = window.adsbygoogle || []).push({}); \/\/ ]]><\/script><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The biotech sector is waking up again and may soon present you with some excellent trading opportunities. Continue reading to see the charts and swing trade setups of the\u00a0best biotech ETFs to put on your radar screen now! iShares NASDAQ Biotechnology ETF ($IBB) About five years ago, iShares NASDAQ Biotechnology ETF ($IBB) kicked off a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[],"class_list":["post-4925","post","type-post","status-publish","format-standard","hentry","category-stock-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=4925"}],"version-history":[{"count":0,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4925\/revisions"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=4925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=4925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=4925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}