Healthcare ETF trending lower and gets a bearish signal
The healthcare sector has been lagging the nine other main sectors since the beginning of 2019. The Healthcare Select Sector SPDR (NYSE: XLV) gained 9.24% from the beginning of the year through July 5 and it is the only sector SPDR that has gained less than 10%. The sector has been in the political spotlight to some degree as politicians on both sides of the aisle have been pointing at drug costs as a problem.
One particular exchange-traded fund that caught my eye was the iShares Nasdaq Biotechnology ETF (Nasdaq: IBB). The fund has been trending lower since last September and there is a trend line that connects the highs from then with highs from March and April. The fund just hit the trend line last week and then turned lower.
The ETF saw its 10-day RSI and its daily stochastic readings hit overbought levels last week before turning lower. The stochastic readings just made a bearish crossover on July 5.
The Tickeron Trend Prediction Engine generated a bearish signal for the IBB on July 5 and it calls for a decline of at least 4% within the next month. The signal showed a confidence level of 75% and past predictions on the fund have been successful 85% of the time.
Aroon Indicator for XLV shows an upward move is likely
XLV's Aroon Indicator triggered a bullish signal on June 25, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 292 similar instances where the Aroon Indicator showed a similar pattern. In of the 292 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where XLV's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for XLV just turned positive on May 28, 2025. Looking at past instances where XLV's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
XLV moved above its 50-day moving average on June 26, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where XLV advanced for three days, in of 341 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 25, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on XLV as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for XLV crossed bearishly below the 50-day moving average on June 27, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XLV declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
XLV broke above its upper Bollinger Band on June 10, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Category Health
Advertisement