Healthcare And Medical Stocks Are Frothing
When scanning the market for the weekly selection of breakout candidates it is observed that stocks belonging to the healthcare, medical science and biotechnology sectors predominantly appear in the list of results with the strongest technical features in terms of volumes, relative strength and breakout potential.
Therefore it makes sense to take a look at these sectors from a broader perspective.
Healthcare Stocks Moving Into Virgin Territory
Healthcare stocks appear strongest as per the i-Share Healthcare ETF, which took out its previous price record some weeks ago, retested the broken area, and is now moving higher into virgin territory.
Investors into the sector index (or in related stocks) are now safe to move their stop-loss below the retest zone and the uptrending 30-week moving average (horizontal red line on the weekly chart) to ride the long term trend higher.
Biotechnology Stocks Moving Towards Previous Record Price.
Biotechnology stocks also show significant strength although they are somewhat lagging their healthcare peers. The Nasdaq Biotechnology Index Fund seems to have ended a deep correction and bounced on its long term rising support that has been retested multiple times during the first half of the year.
A similar breakout + retest event as for the Healthcare ETF took place more recently and should propel the Biotech index back up to its previous record price around $400. A safe protection stop-loss should be placed below the retest area and slightly lower than $300 to ride the trend to $400 on the medium term and possibly towards a new price record from a longer term perspective.
Which Individual Stocks To Select For Investment Purposes?
The easiest and least worrisome investment strategy is always to buy the broader sector indices, but the best capital gains can be achieved by buying stocks with strongest growth perspectives. For this purpose investors should stick with us and follow-up on our always-free strategies published on a regular basis.