Questions on NTLA and FHLC

We got a question from Fred on Intellia Therapeutics (NTLA) and the Fidelity MSCI Health Care Index ETF (FHLC).

Intellia Therapeutics (NTLA)

NTLA is a small cap biotech name that shows signs of a 2025 YTD head and shoulders bottom on both an absolute price basis and relative to the S&P 500. This tactically bullish setup stays intact above the 26- and 40-week moving averages at 11.42 and 8.96, respectively, and the shoulder lows at 9.82 and 8.96. NTLA defended in these moving averages as support in late August, which is a positive sign for the stock.

A decisive rally beyond 12.84 and 14.61 would confirm the head and shoulders bottom and suggest further upside to 20 and 23.10.

Chart 1: Intellia Therapeutics (NTLA)

Fidelity MSCI Health Care Index ETF (FHLC)

FHLC still tilts bearish. Although FLHC has pushed above its absolute price moving averages and the neckline for the recently completed head and shoulders top, the relative tend is weak, which provides a bearish divergence. A 1-year downtrend line is intact and provides an overhang for FHLC.

If the relative price trend proves to be a bearish leading indicator for the absolute price trend, FHLC should roll over and close back below its absolute price moving averages at 65.55-64.18. If this occurs, FHLC shows risk to the recent lows near 61-60 and potentially down to 57.32-55.92 (2023 and 2022 lows and the head and shoulders pattern count).

Should FHLC prove to be stronger than expect, the shoulder highs offer resistance at 70.00-70.58,

Chart 2: Fidelity MSCI Health Care Index ETF (FHLC)