Gilead Sciences Could Dip a Little in Reaction to Earnings

The charts are looking soft right now.
Stocks quotes in this article: GILD

Gilead Sciences (GILD) is due to report earnings Tuesday. Let's review the charts that are looking a little "soft" right now.  

 
In this daily bar chart of GILD, below, we can see that prices are trading below the declining 50-day moving average line. The lows of May and June are not far below the market and so is the rising 200-day moving average line. They are all likely targets if the bears get the upper hand.
 
The On-Balance-Volume (OBV) line shows some weakness in the back half of July, and the Moving Average Convergence Divergence (MACD) oscillator is poised to cross below the zero line for a possible sell signal.  
 
 
In this daily Point and Figure chart of GILD, below, we can see a potential downside price target of around $69. 
 
 
 
 
Bottom line strategy: Consider reducing your long exposure on GILD ahead of earnings. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Biotechnology | Healthcare | Pharmaceuticals | Earnings Preview

More from Investing

Remember, Overbought and Extended Aren't the Same as Bearish and Broken Down

Bob Byrne

There is not sufficient technical evidence to assert that Wednesday's decline in stocks was the beginning of a severe decline.

Sloppy Wednesday, Parsing Retail Sales, Dissecting Fed Minutes, Shiny Apple

Stephen Guilfoyle

Plus, we check out how the market is handicapping future rate hikes and the latest GDP guesstimate out of the Atlanta Fed (it's lower again).

Take Advantage of Market Irrationality With This Stock

Paul Price

ACCO brands is a hidden gem with a 4.38% yield that you can own at a crazy low valuation. Let me show you how to play it.

Corrective Action Is Developing and Is Putting Bulls to the Test

James "Rev Shark" DePorre

We soon will see how much bullish support there really is.

Suddenly, a Fear of Heights on Wall Street

Helene Meisler

Sentiment anecdotally shifted on Wednesday. Let's take a look.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight