Monday, March 8, 1993
Looking for a floor
Biotech stocks registered a tiny bounce last week, with the BioCentury 100 edging up 1 percent to register its first gain after falling nearly 26 percent in the previous six weeks. But it will take much more than that - and maybe as much as a year - to put a solid floor under the sagging sector.
Richard McCabe, chief market analyst at Merrill Lynch, has five technical factors he considers to determine if a stock or group of stocks has reached a base level. First, he looks at whether it is at a "support level" at which it traded for a considerable period of time. Once a group reaches that level, he said, investors who missed