IBB is an ETF that seeks to track the investment results of an index composed of biotechnology and pharmaceutical equities listed on the NASDAQ.
It seems that it is playing out one of my favorite trading setups of subwaves A-B-C of the final wave 5 up.
The first wave ( A ) of [ 5 ] is supposed to subdivide into five waves. And at this point as long as it holds a critical support at $100.22 it should rally to a new higher high to complete the 5th wave of the wave ( A ) of [ 5 ]. Harmonic Elliott Wave methodology says that wave A of 5 normally stalls near the top of the preceding rally of the wave 3. In this case wave [ 3 ] topped at $133.60. Again, wave A of 5 may top a bit lower that top, right at the top or a bit higher than that important top.
Typical projections for the wave 5 give us a target zone between $126.54 and $133.95.
So this is a good trading setup because we have a very small risk with the stop for longs at $100.00 and price target over $126.