Biopharmaceutical company Gilead Sciences (GILD) makes and distributes many drugs but today I am more interested in the position of the charts and indicators. Let's check them now.
In the daily bar chart of GILD, below, I can see that share prices peaked in December. GILD has been slowly declining the past four months. GILD now trades below the declining 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line shows weakness from around the middle of January. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line but could generate a cover shorts buy signal.
In the weekly Japanese candlestick of GILD, below, I can see a stock that looks vulnerable to further declines. GILD has turned lower and looks headed for a test of the rising 40-week moving average line. The candles are not showing me a bottom reversal pattern and no lower shadows to suggest that traders are rejecting the lows.
The weekly OBV line shows a drift lower from November. The MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of GILD, below, I can see a potential downside price target in the $73 area.
In this weekly Point and Figure chart of GILD, below, I can see a potential downside price target in the $73-$72 area.
Bottom-line strategy: GILD is a volatile stock that can move up or down quickly depending on the results of any given drug or treatment. The shares could retreat further in the days and weeks ahead.
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