Biotech Bear Flag

By | October 13, 2015

The Biotech iShares (IBB) dropped sharply last month and then began consolidating in triangle pattern. The drop and subsequent consolidation together formed a bearish flag or pennant pattern on the daily chart. In today’s session shares fell over 3% and are retesting pattern support. A breakdown at this point would be significant, as measured by the height of the flagpole it projects down to the $220.00 area.

99937.ibbchart

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