Rich Ross spoke on CNBC's Trading Nation about a bullish trading idea in iShares NASDAQ Biotechnology Index (ETF) IBB. He analyzed the stock from the technical standpoint and he identified two bullish patterns.
The first pattern is the ascending triangle, which was formed after the stock rallied from its November lows. Ross explained that the ascending triangle is a bullish continuation pattern. He finds it important, because iShares NASDAQ Biotechnology Index (ETF) is currently trading close to its resistance, which is at $300. The second pattern is called a cup and handle pattern, which is also a bullish continuation pattern.
Ross added that it is necessary for iShares NASDAQ Biotechnology Index (ETF) to break out on the upside, above the resistance to unlock the pattern, but he would be a buyer in the anticipation of the break out. If the break out happens, he would buy more.
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