ETF Trends
ETF Trends

The subject has been talked to death over the past week, but that does not mean attention on the biotech sector is waning.

Amid increased talk of a biotech bubble and fears of government-controlled pricing, biotech stocks and exchange traded funds have been under siege in recent. Over the past five trading sessions the iShares Nasdaq Biotechnology ETF (NasdaqGM: IBB), the largest biotech by assets, has tumbled 9%. So dramatic has the biotech swoon been that the best ETF tracking the group over the past five days has been the PowerShares Dynamic Biotechnology & Genome Portfolio (NYSEArca: PBE), which is off 7.5%. [Biotech not the Only Momentum ETFs Suffering]

If there is a silver lining for biotech bulls, it is that IBB has not yet violated its multi-year uptrend, indicating that all though the ETF is down 12.3% in the past month, its technicals are not as dreadful as some may be thinking.

Alphatrends.net founder Brian Shannon told Yahoo’s Breakout the uptrend is still going.

“We’re down about 13% off the highs we’ve seen this year and coming pretty close to breakeven year-to-day so it’s really not all that bad,” Shannon told Yahoo. “We’re coming down to the 100-day moving average which is rising. That’s been an area where the biotechs have found support and bounced on 4 or 6 occasions in the last 6 months.”

IBB needs to hold support at $230 to maintain its uptrend. The ETF has not traded below that level in over two months.

Showing Page 1 of 2