“So what should we be watching here? Well, price has tested the underside of this important level and been unable to regain it (thus far). So we should now watch to see if this broken trend line now serves as resistance,” writes technical analyst Andrew Thrasher for See It Market. “Now let’s turn the focus to momentum, specifically the Relative Strength Index (RSI). In the top panel of the chart we can see it is trying to find its footing around a level of prior support. But, as of yet, it hasn’t been able to get up off the mat.”
While all biotech ETFs have benefited this year from a spate of Food and Drug Administration approvals and a wave of mergers and acquisitions, FBT has frequently found itself at the right place at the right time as the ETF has frequently been home to acquired companies. FBT was 2014’s best-performing health care ETF.
First Trust NYSE Arca Biotechnology Index
