"The Nasdaq Composite broadly is breaking higher, and the key reason why is that it's not just tech anymore. You have biotechnology also lifting its head higher and participating," Ari Wald, head of technical analysis at Oppenheimer, told CNBC's "Trading Nation" on Monday.
"Talking about the strength in the Nasdaq Biotech ETF, … it really started with the breakout through five-year resistance last year," he said.
He added that this upturn following a consolidation looks similar to how the ETF traded last summer. Like this year, the IBB consolidated for five months and then broke higher. Wald said both of those bullish trends bode well for more upside.
Nancy Tengler, chief investment officer at Laffer Tengler Investments, prefers to be selective within the biotech space.
"We're playing the space with individual holdings. Our two largest are J&J, which by the way bought Actelion which is one of the largest biotech companies, and AbbVie, which is alternately characterized as pharma and biotech," said Tengler.
Johnson & Johnson and AbbVie have had a mixed month, falling 2% and gaining 2%, respectively.
Disclosure: Laffer Tengler Investments holds ABBV and JNJ.