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I decided to take a closer look at the biotech sector today.

The sector regained some steam in the last two weeks of July and broke out above the 8-month downtrend, but this action was extremely irresolute and the volume just above average. This was not the best condition to trade higher and the sector dropped on its own weight.
Just take a look at the best/worst stocks now.
Illumina Inc.(ILMN),is the strongest stock available on my database.

The stock gapped up on better than expected earnings 3 weeks ago and is now pulling back. The bad news are that I cannot identify a solid support until the low $32.

Celgene Corporation (CELG),performed extremely well in the last 2 months and printed new highs in the middle of July. The stock missed to follow through and reversed in a classic 2B Top Pattern. A pullback to resistance could allow a nice short sale entry point.


LifeCell Corp.(LIFC), offers a very similary pattern. The stock dropped after the new highs and re-tested the highs last week. A break below the 9-month trendline should trigger a major sellof and send the stock much lower.


All charts found was detected through:®

Basic Materials sector   Technical chart patterns   support/resistance levels   ETFs (exchange traded funds)   Deron Wagner   iShares Hong Kong (EWH)   S&P 500 chart pattern   emini's S&P 500   earnings   economic data   Biotech HOLDR (BBH)   Emini's Nas 100   Short selling ETFs   exchange traded funds   sector rotation   etfs   corn futures   selling options   commodities   mcio