Rich Ross of Evercore ISI said regarding IBB “an ascending triangle that has formed on the chart. “This tends to be a bullish continuation pattern to the upside,” he said. This type of pattern often emerges when a stock in an uptrend consolidates, the idea is that there could be a breakout above previous resistance,” reports CNBC.

ETF traders who are betting big on the biotechnology sector rebound have also utilized leveraged long options including the Direxion Daily S&P Biotech Bull Shares (NYSEArca: LABU), which takes the 3x or 300% daily performance of the S&P Biotechnology Select Industry Index.

Other options include the ProShares UltraPro Nasdaq Biotechnology (NasdaqGM: UBIO), which takes the 3x daily performance of the Nasdaq Biotechnology Index, and the ProShares Ultra Nasdaq Biotechnology (NasdaqGM: BIB), which takes the 2x performance of the same benchmark.

“The second pattern Ross noted was a “textbook” cup and handle within that ascending triangle. This type of pattern forms during a period of consolidation against a broader backdrop of a strong base of support,” according to CNBC.

For more information on the biotech sector, visit our biotechnology category.