We liked the charts of Gilead Sciences (GILD) on October 31 when we recommended, "Aggressive traders could go long GILD at current levels risking to $60. Our price targets are $75 and $91." Prices have just about reached our first target of $75 so another inspection of the charts is in order.
In this updated daily bar chart of GILD, below, we can see that prices have worked higher the past two months. GILD is now trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has been very strong since early October and that tells me that buyers of GILD are being very aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of GILD, below, we can see that the uptrend has been refreshed with GILD breaking out over its August highs. Prices are trading above the rising 40-week moving average line.
The weekly OBV line is close to making its own new high for the move up. The weekly MACD oscillator has crossed to a new outright buy signal.
In this daily Point and Figure chart of GILD, below, we can see the recent upside breakout and an $83 price target.
In this weekly Point and Figure chart of GILD, below, we used a five box reversal filter. Here the chart suggests a $111 price target.
Bottom line strategy: Continue to hold longs from previous recommendations. Raise stops to $68 from $60. $83, $91 and $111 are our price targets now.
