by Shane Ormond
On May 21, 2020
Target reported that online sales on an average day in April exceeded last year’s Cyber-Monday sale, because if you’re not going to buy a Cuisinart Perfectemp 14 Cup Programmable Coffee Maker at the end of the world, when are you gunna buy one?
On Friday, we looked at an Daily Price Chart with OBV Line of Immunomedics, Inc., noting that the stock’s OBV line is in an uptrend.
Today’s Chart of the Day is a Daily Price Chart with moving averages for iShares Nasdaq Biotechnology ETF (NYSE: IBB).
IBB seeks to track the investment results of the NASDAQ Biotechnology Index, which contains securities of companies listed on NASDAQ that are classified according to the Industry Classification Benchmark as either biotechnology or pharmaceuticals and that also meet other eligibility criteria determined by Nasdaq, Inc.
Now, below is a Daily Price Chart with moving averages for IBB.
Back in April, the IBB 1–Month price crossed above the 10–Month simple moving–average (SMA) indicating IBB is on a PowerTrend ‘Buy’ signal (circled).
And on through May, prices have continued to rise!
Since the PowerTrend ‘Buy’ signal occurred for the ETF back in April, when the ETF was around $124.00, the ETF has seen a 6.7% increase.
Now, as you can see, the 1–Month moving–average is still above the 10–Bonth SMA. That means the bullish trend is still in play!
This bullish price trend makes IBB a good candidate for a call option purchase.
As long as the 1–Month price remains above the 10–Month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be keeping our eye on this ETF as it continues to trend upward so we’ll know the moment the market conditions shift and the ETF begins to come back down offering a better buying opportunity in a bullish market.
Editor, Chart Of The Day