Nasdaq Biotechnology Index Fund: Short Sell At $268.69

 | Mar 02, 2014 12:02AM ET

From a technical view, the ETF is posting a tentative reversal candlestick pattern on a weekly chart while biotechnology sector is in a parabolic rise. Regarding technical indicators, the weekly RSI is posting a tentative bearish divergence in its overbought area. On a relative basis against the IVV S&P500, the iShares Nasdaq Biotechnology Index Fund is reversing down and looks set for a drop.

Trading strategy:

Short Sell at $268.69 - Stop loss at $275.75 - Target at $214.5.