The iShares Nasdaq Biotechnology ETF (NasdaqGM: IBB), the largest biotechnology exchange traded fund by assets, is up more than 10% year-to-date and although the behemoth biotech fund has backed off its recent highs, some traders believe more upside is coming for the widely followed sector.
Speculation of more upside for biotechnology stocks and ETFs comes against a potentially challenging political backdrop. Earlier this month, President Trump vowed “Medicine prices will be coming way down — way, way, way down — and that’s going to happen fast.”
Trump added that pharmaceuticals prices in the U.S. are “outrageous.” Earlier this year, Trump said the pharmaceuticals companies “are getting away with murder” when it comes to pricing on their products.
Looking at IBB’s technicals, “you can see that the 50-day moving average (blue line) has recently crossed above the 200-day moving average (red line). This extremely common buy signal is known to active traders as the golden cross and is generally used to mark the beginning of a major uptrend,” according to Investopedia.