There’s a chance shares of the iShares Biotechnology ETF (NASDAQ:IBB) may be about to break out. They are testing a resistance level. If they can get above it, a new uptrend may form.
Resistance is a large group of investors looking to sell their shares at, or close to, the same price. As you can see on the following chart, for IBB there has been resistance around $119.
If the shares can trade and hold above it, it will show that the investors who created the resistance are gone. They have cancelled or finished their orders.
With this large amount of supply off the market, traders will be forced to pay higher prices to acquire shares. This could force IBB into a new uptrend.
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