Biotechnology Stocks Preparing A New Bullish Trend

Biotechnology stocks look bullish, and even more bullish than ever in the last three years. Remember how ‘everyone and his uncle’ was bullish on the biotech sector until 2014? Remember as well how this sentiment turned bearish, and remained so, after it crashed, until today? Well, we have news, the really important type of news: biotechnology stocks are about to turn bullish again anytime now.

As always, once a sector rises 20 to 40% mainstream media will join the hype which will be after the nicest returns will be caught by the group of smart investors which always get in early on. That is when the vast majority of investors will join, but, unfortunately, too late.

This is how it works in markets, and investors better learn to identify this never-ending trend, and anticipate it. InvestingHaven was founded to help investors in their educational process. We are also on record identifying when investors should go all in after a crash as that’s when the most juicy opportunities arise.

Biotechnology stocks about to turn bullish … again

We alerted readers of the potentially breakout of biotech stocks half a year ago in 4 Biotechnology Stocks Worth Considering In 2018. Especially ARRY and XLRN have already broke out in the meantime, and, we are inclined to project that SGMO and FOLD should follow soon (note: we do not exclude a gap down due to poor earnings which will lead to some repair time before they break out as well).

Moreover, four months ago we observed a retracement of the biotechnology sector: 4 Biotech Stocks That Are Potentially Setting A Major Double Top. In it we mentioned 4 biotech stocks, and 3 of them rectraced exactly as forecast though not as deep as expected: BIIB, REGN and CELG. One biotech stock already broke out above its resistance: ILMN.

So why do we think biotech stocks will be bullish soon? Because of the chart setup of the sector, on two important timeframes, i.e. two years and 4 to 5 years. Both confirm the bullish trend that is brewing. Note as well that we will use two different sector ETF’s … it always pays to avoid the trap of one ETF which may have too much exposure on a small number of stocks in the sector.

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