Biotech Stocks Rally. 3 Favorite Plays From the Charts.

Key Points

About This Summary

• Ionis Pharmaceuticals has consolidated gains after rallying on clinical data, with strong volume.
• Natera is seeing momentum shift back to the bulls after a healthy digestion period.
• EyePoint Pharmaceuticals is holding through a tight bull flag.

Biotech stocks are flashing risk-on. The SPDR S&P Biotech ETF has outperformed the broader Health Care Select Sector SPDR Fund and S&P 500 over the last three months.

The biotech ETF is making a run toward the very round $100 level and flashed relative strength this week despite broader market softness, an encouraging sign.

The SPDR S&P Biotech ETF was trading around $97.70 Tuesday.

Biotech stocks have outgained the broader healthcare sector.

Below we highlight three biotech stocks that stand out technically and could continue to deliver upside as momentum in the group builds into year end.

Ionis Pharmaceuticals, which focuses on neurological and cardiovascular therapeutics, has gained 75% year to date. The stock rallied 43% during the week ending Sept. 5 following the release of positive clinical data and accompanied by the strongest weekly volume in five years.

Importantly, the stock has held its ground since, showing just a very small pullback as sellers remain scarce even at elevated levels. It has now carved out a classic bull flag formation, a constructive pattern that often resolves to the upside following a sharp advance. A break above the $63 level would confirm the breakout and could set the stage for a measured move toward $84 by year-end.

Ionis Pharmaceuticals was trading around $62.90 Tuesday.

IONS shows tight consolidation after big move higher.

Natera, which focuses on genomics and diagnostics, has advanced 44% over the past year and currently sits just 2% below its all-time high. It has been a model of consistency, logging only two four-week losing streaks since November 2023.

The stock has been very resilient. Following a rally of almost 400% from late 2023 into early 2025, it has consolidated gains in a broad, constructive range. That healthy digestion gave bears ample opportunity to take control, yet they failed to break it down, shifting momentum back to the bulls. A breakout above $183 could open the door to a measured move toward $241 by mid-2026.

Natera traded around $178.60 Tuesday.

NTRA’s movement should provide a platform to advance into year end.

EyePoint Pharmaceuticals, a developer of innovative treatments for eye diseases, has surged 80% in 2025, and a more impressive 250% off its early April lows. The advance has unfolded in a measured, stair-step fashion, reflecting healthy accumulation rather than speculative froth.

Momentum began to accelerate following a breakout above an inverse head and shoulders pattern in June, and the stock continues to behave well technically. It’s now digesting gains through a tight bull flag, holding up far better in the lower teens than it did during last year’s Q4 pullback. A breakout above $13.75 would confirm the breakout and could fuel a continuation move toward $17 into year-end.

EyePoint Pharmaceuticals was trading around $13.40 Tuesday.

EYPT looks ready for the next leg higher after a strong move.

Write to Doug Busch at douglas.busch@barrons.com