Some biotech stocks may be poised to rise in the days ahead as technical traders step in to buy oversold names in the space.
Technical analysts often look for extreme levels in the market as a way to find buying or selling opportunities. The idea is that, statistically, asset classes tend to revert to their moving averages.
One of the oversold areas of the market right now is biotech, which took a beating Monday, after Democratic presidential candidate Hillary Clinton published a tweet about "price gouging" in the industry.
Tuesday, Clinton unveiled a plan to curb drug costs.