Astute readers will remember our bullish biotechnology stocks forecast for 2020. This qualifies one more of successful forecast in our series of 2020 market forecasts. The biotech market is doing exactly what we expected it to do: move strongly higher. We know for sure that biotech stocks will move aggressively higher in the 2nd part of 2020.
The biotech chart, represented by IBB ETF, is embedded below.
Sometimes it is so much more powerful to get rid of all annotations, patterns, channels, etc. Looking at the ‘naked’ candlestick chart helps focus on ongoing price action, and should be considered an integral component of decent chart analysis.
The daily chart on 9 months is shown below.
Look how the sharp V-shaped recovery in March was followed by a consolidation over a 2 month period.
The consolidation is now coming to an end, and the biotech stock space is now set to move aggressively higher.
Why do we think ‘aggressively’ higher? What’s the evidence?
The chart setup, it is uber bullish.
We see a 20 to 50% upside potential in this ETF which means a select number of biotech stocks will double and triple before the end of this year!
