Biotech looks ripe for a breakout, according to one top technician.
The Nasdaq Biotechnology ETF, the IBB, is booming this year, up more than 11 percent as the has rallied nearly 7 percent.
And while the ETF was down more than 1 percent on Friday, Rich Ross of Evercore ISI said the charts are showing "two great reasons to buy" on the dip.
First, Ross noted an ascending triangle that has formed on the chart. "This tends to be a bullish continuation pattern to the upside," he said. This type of pattern often emerges when a stock in an uptrend consolidates, the idea is that there could be a breakout above previous resistance.
"We're into well-defined resistance around $300 ... we do need to break above that resistance to really unlock the pattern, but the technicals suggest we get it," Ross said Thursday on CNBC's "Trading Nation."
The second pattern Ross noted was a "textbook" cup and handle within that ascending triangle. This type of pattern forms during a period of consolidation against a broader backdrop of a strong base of support.
Ultimately, Ross believes that when the breakout above $300 does occur, the IBB could rally as high as $325 — or another 10 percent from current levels.