Parm

Technicals Saying Take Profits On Gilead Sciences, Inc. (NASDAQ:

NASDAQ:GILD   GILEAD SCIENCES INC
80 5 1
The biotech sector has had an amazing run in 2014, and you could say that Gilead Sciences             , Inc. (NASDAQ:GILD) has lead the charge. The biopharma company is up roughly 40% year to date, and this is after an amazing 100% return for investors in 2013. One could say this is a can't miss stock and rewards its shareholders extremely well. I am not trying to take anything away from the run that Gilead Sciences             , Inc. (NASDAQ:GILD) has had. However, looking at the weekly chart I am seeing a bearish pattern being formed, and this indicates to me that there will be downside in the near future.

The candlestick that has developed on the chart below is called, a "bearish engulfing candle" and it points to further weakness ahead. So how far can Gilead fall? The first meaningful level that I see is $84, as that is not only the break out area which lead to the recent run up to the all time high of $110.64. But there are also some key proprietary factors which should provide longs a 10% bounce at that level. So while this level may seem like it's far away, know this, the biotech sector can be extremely volatile and this level could be achieved easily in weeks, if not days. Keep a close eye on this chart as the trading action it presents will be fun and profitable!

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Parm Mann
Elite Round Table
Follow me on twitter: @ParmMannTrader
suryajapan
2 years ago
Good analysis. I thought it would rise to 120 for fundamental reasons (H. approval, ER this month).
But the chart is stronger than fundamentals. Do you have a long term target after the correction?
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Parm suryajapan
2 years ago
I still would like to see GILD get to my $84 area. The weekly chart is telling me that. At that point I would initiate a position on the long side. Are you an investor or trader?
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suryajapan Parm
2 years ago
I am both. Investor as long in shares and 2016 calls, as well as trader with short term calls and puts.
I also expected $84, having buy orders from $84.33 - 78.88, but it seems to me that it won't drop below $100, at least till ER next week.
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Parm suryajapan
2 years ago
You should check out the Elite Round Table. We have been taking huge profits for members in days. This market volatility is a traders dream.
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Rocketman PRO
2 years ago
Hi! What do you think about my weekly chart on GILD?
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