Invesco Pharmaceuticals ETF technical strength supports further gains

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Invesco Pharmaceuticals ETF tech strength

Highlights

PJP found support at the 119–120 level in October after a normal pullback and now targets an upside of 137 with an active bullish pattern.
PJP trades above both its 50-day and 200-day moving averages, underscoring relative technical strength as only 25% of 170 ETFs achieve this status.
PJP's ability to meet upside targets, maintain support, and sustain breakouts positions it as a leading ETF amid broadening market weakness.

Technical setup points to continued momentum

As reported by CNBC, PJP has extended an uptrend that began in late March, after rallying through the summer, peaking in late August and then pulling back into October before moving higher again. The retreat found support around the 119 to 120 area, a zone that aligned with prior July congestion and the 38.2% Fibonacci retracement of the March-to-August advance.

That combination suggests the decline fits the pattern of a normal pullback within a broader uptrend, with buyers stepping in at an important technical level. The fund also formed an inverse head-and-shoulders pattern between March and May, and that breakout reached its upside target before extending further.

A similar bullish setup emerged in October after PJP held support and formed another positive pattern. That formation remains active, with a potential upside target of 137, while the weekly chart shows the ETF has been trending higher since at least 2023.

Relative strength stands out as market breadth narrows

PJP's position above both its 50-day and 200-day moving averages reinforces its relative strength, particularly as other parts of the market deteriorate. The ETF has spent most of its time above the 50-day line and has not touched the 200-day average for an extended period.

That contrasts with broader market conditions. As of Thursday morning, Nov. 5, only 25% of roughly 170 ETFs tracked in the scan were trading above both moving averages, while semiconductor fund SMH, which had held above those levels for much of the year, began weakening in July and recently fell below its 200-day moving average.

By that measure, PJP continues to rank among the stronger areas of the market. Its record of meeting upside targets, maintaining support during pullbacks and sustaining breakouts may keep it in focus for investors seeking sectors with stronger technical positioning.

Our earlier analysis of the DAX index highlighted how it was holding firmly above key moving averages, signaling strong upside momentum despite moderately volatile trading. We outlined nearby support and resistance levels and noted that sustained buying interest could keep the path of least resistance upward, while a break below support could trigger a deeper pullback.

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