These three pharmaceutical ETFs have dropped to support, which means they may be about to rebound.
Support is a large concentration of buyers who have gathered around the same price level. At support levels, there is more demand for the stock than there is supply.
Downtrends end when they reach support levels.
Many times, stocks rally off of support levels. This happens when some of the buyers become more aggressive. They don’t want the other buyers to get ahead of them in line. They decide to pay higher prices.
This forces the stock into rally mode.
The SPDR S&P Pharmaceuticals ETF XPH has dropped to the $47.85 level. This level was support in November and December. It was the base for a large move higher into January. It could happen again.
The Global X Cannabis ETF POTX has reached the $14 level once again. After finding support at this level in January and March, the ETF rallied. There’s a chance it happens again.
The Direxion Daily Pharmaceutical & Medical Bull 3X Shares ETF PILL has found support at the $19.50 level. This level was support in November and December. It was the base for a significant move higher.
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