Technicals Saying Take Profits On Gilead Sciences, Inc. (NASDAQ:
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
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Follow me on twitter: @ParmMannTrader
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!
If you only read one email again, make sure it comes from the Elite Round Table. Our FREE market emails contain information that can actually make you money. Ask yourself, what email have you read that can do that? Answer = none. Join our list here.
Parm Mann
Elite Round Table
Follow me on twitter: @ParmMannTrader