GILDGilead Price just broke the Kumo on the upside on the daily chart. This is a bullish sign. The TS is above the KS and both are within the Kumo. The stop loss set by the KS is at $90.55. I have a long position.
1GILD trade ideas
Breaking throughGILD has suffered over the past 3 quarters, but with a reshaping of its business, we could see them pushing up into positive territory again. Looking for a TL break and the momentum to continue.
GILDA break below the short term ascending trend-line (Orange) would be a perfect opportunity to short GILD with a target of the previous lows 82.
GILD: The Little Engine that CouldDespite my overall bearish outlook on stocks, Gilead Sciences stands out as the 'Little Engine that Could' in the sense that it keeps chugging along despite being battered by the broader index just after earnings came out late January. On the fundamental side, most analysts think it's way underweight citing that it should be worth as much as 66% more as per the attached article.
In my personal opinion, the fact that it is largely uncorrelated with the S&P index (overlaid in red) is actually a good thing. Stocks in general are in a frenzy over more free money from a global quantitative easing, bolstered further by the dovishness of the FOMC meeting consensus released yesterday.
Technically, it appears to be consolidating once more in somewhat of a flag pattern, which is even easier to see when Heikin Ashi charts are applied. Further, it is consolidating at a major fibonacci level (anchored from the high of 2016-01-25 to the strong level of support from the low of 2016-02-19). Yesterday proved very bullish leading us to expect some pullback, but the high of today was still greater than that of Tuesday, another bullish sign.
Note the proximity to the Ichimoku cloud, which may indicate further pressure building at that level. The other technicals such as the MACD, ADX and RSI suggest that we are ranging, though fortunately the Aroon indicator advocates that we are in a longer term uptrend.
Trading idea : Wait for a big bull bar to confirm the breakout from the flag pattern. Set your profit targets using the fibonacci levels above, with a protective stop at the base of the (hypothetical at this point) bull candle. Keep in mind that this may be something you want to hold on to long term.
GILD: One more downside possibleThere is one more downside possible. Once it breaks the descending trendline, it will make new highs.
Downward Continuation..Took a small position and looking to add if it gives way to continued downward pressure. Looking for another ride down the lower side of the band.
Can Gilead Beat the Markets?As of March 3rd, Gilead earned a 'buy' rating from Citigroup as verified by the link. It is true that GILD should have performed better after earnings as has been historically demonstrated, but it took a beating with the overall index but failed to share in the rebound. Personally, I think this is a good thing, for you'll note from my previous post here previous post that this is nothing but a massive short covering rally, just like we are seeing with oil
The good news is that we seem to see see a nice breakout to the upside from the consolidation in terms of a bull triangle. We are not out of the woods yet, as we face resistance from the ichimoku cloud overhead and a neighboring fibonacci level at about $90.30.
In fact, the level mentioned above would make a great stop buy order to enter the trade, and clearly that strong level of support at $87.22 would serve as a good stop loss. The subsequent levels after $90.30 make perfect profit targets.
GILD moving toward weekly trendline / 50 day rejectionThis uptrend will continue until 50 MA, / orange downtrend line.
I can't turn bullish on this until it consolidates above 95, and to the right of the orange trend line.
More Pain for Gild?H&S on Monthly. Broke under neckline of $86 on 385% vol. Red long body. Indicators are Bearish.
$GILD BUY TIME.Industry leader, new management, sitting fatly on weekly support, lowest stochastics in months. BUY.
