After the week biotech stocks have had, some investors might feel like calling a doctor.
Even after a bounce-back on Friday, the popular iShares NASDAQ Biotech ETF is down more than five percent in the past five sessions. But with the ETF still nicely higher on the year, technical and fundamental traders alike say this is a dip to buy, not to run from.
"Let's put this in perspective. If you go back to the fall of 2011, the biotech index has been up four times since then. So is it unusual to see some profit-taking along the way? The answer is 'no,'" said Craig Johnson, senior technical research analyst with Piper Jaffray.
Diving into specific biotech charts, Johnson finds that the stocks that have fallen the most are the ones that had been "the most extended."
"That tells me that coming into the end of the quarter, this is some rebalancing of portfolios, some profit taking. And when you look at the longer-term chart, the primary trend is still up."