Sunday, March 07, 2004

Chart of the Week

NASDAQ Biotechnology Index 1-Year Candlestick Chart

BOTTOM LINE: The NASDAQ Biotech Index has been in a trading range for 10 months. My short-term trading indicators generated buy signals on this index early last week. It proceeded to break through the 800 resistance level on Thursday, with a confirmation of the break on Friday. Partnerships with major pharmaceutical companies, FDA approvals and low interests rates should propel this sector higher in the intermediate-term.

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