$IBB Remains in a Channel With Some Momentum to Downside

Biotech Sector ($IBB) Weekly: Biotech $IBB appears to continue to remain in a channel since beginning of 2016. One may even interpret this as an bearish pennant, but it’s too early too tell as it may get support from the 50 Week moving average and move out of the channel to the upside. RSI appears to support an upward trend in the longer term, but for now, it appears it will test the 50 Week – and failing to hold that, the bottom of the channel at around 260. MACD seems to be rolling over to the downside for now so advise caution buying on dips until a meaningful support can be confirmed at a later date.