the_get_man
Long

Double Bottom Perfect Doji Trigger for Profits

NASDAQ:GILD   GILEAD SCIENCES INC
50 0 1
GILD has tested $81.70 during the start of 2015 and has retesting this 52-Week Low again last week. This week GILD is forming a perfect doji based on investor's indecision as to whether or not this is new support forming from this double bottom or if GILD will go lower and retest some old support areas before bouncing higher.

My thoughts are that long term investors are bullish on this stock and have been waiting to see if it would retest this low again in order to accumulate more shares. I think the indecisiveness and lack of volume that has contradicted my thoughts thus far is based on the recent FOMC. Now that the Fed have released the minutes, the stock will either begin to bounce of this new support level and trigger our trade or it will retest old support and allow us to setup another trade.

As a result, I will use this current perfect doji to place the trade since tomorrow will be the telling of which way the stock is headed.

I will setup this trade:
Trigger: Buy-Stop Order @$84.24
Stop: Stop Order @$81.48
Target: Limit Order @$101.43 (100 SMA o the Weekly)

This trade has a Reward:Risk ratio of 6:1

Due to the SMAs on the Weekly this trade also appears to be a good setup for an Iron Condor by getting in to the Bull Put Spread now and legging into the Bear Call Spread as it approaches the Target
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