Biotech (IBB): A potential bullish flag

The iShares Biotechnology ETF (IBB) has paused after a test of the 174-177 area highs from 2021. This dip could form a bullish flag - meaning that IBB's uptrend should resume and surpass those highs with upside potential to the big base pattern count at 192. Holding the upper to mid 160s would maintain the developing bullish flag. A decisive rally above the 13-day moving average and upper flag downtrend line near 170.76 (171) would confirm the flag and support the case for further upside on IBB.

Chart 1: iShares Biotechnology ETF (IBB) (top) and relative to the S&P 500 (bottom)

Chart 2: iShares Biotechnology ETF (IBB) (top) and volume (bottom)