However, IBB’s technical outlook is precarious. With a decent gain Thursday, the ETF was able to reclaim its 200-day moving average, but IBB remains mired below its 50-day line. Plus, there are indications that a head-and-shoulders pattern is at play.

“Two more key levels Miller Tabak equity strategist Matt Maley is watching are 105.5, which was the IBB’s high in early November and early December, and 101.5, which is the low touched in August and November. A break below 101.5 would be quite bearish for the IBB,” according to CNBC.

The $9.6 billion IBB tracks the Nasdaq Biotechnology Index and holds nearly 160 stocks. Biogen Inc. (NASDAQ: BIIB), Amgen Inc, (NASDAQ: AMGN), Gilead Sciences Corp. (NASDAQ: GILD) and Celegene Inc. (NASDAQ: CELG) combine for over 31% of IBB’s weight.

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