The iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) is making a big move higher, but there’s a chance that the rally is about to end. The shares have reached a level that has been resistance before.
The reason for today’s move? Biogen’s (NASDAQ:BIIB) biologic license application for aducanumab, its investigational Alzheimer’s treatment, received FDA approval under the accelerated approval pathway.
In March and again in April, IBB rallied up to the $158 level. Both times it ran into a wall of sellers and a downtrend followed.
Now IBB has reached this important level once again and as for now, the sellers still seem to be out there. If the resistance doesn’t break in the next few days, there’s a chance it heads lower for a third time.
See Also: Biogen Gets FDA Nod For Controversial Alzheimer’s Drug; First Treatment Approval For The Disease In 18 Years