Gilead Sciences (GILD) is up sharply this Monday morning after the company formalized an agreement with Chinese authorities to study the effectiveness of an experimental Ebola and SARS treatment on patients infected with the coronavirus. Trials for the drug will be conducted in Wuhan, the central Chinese city that is ground zero for the current outbreak.
Let's check out the charts of this company.
In the daily bar chart of GILD, below, we can see that prices opened sharply higher Monday but have moved down to the lows (so far) of the day. Prices had broken above the highs of December and September but where they close is more important to technical analysts and investors.
Prices are above the bottoming 50-day moving average line the bottoming 200-day moving average line. Despite the pullback from the opening strength a price gap or void is still visible and speaks to the power of the buying Monday.
The On-Balance-Volume (OBV) line should jump up Monday but it had been trending lower over the past month. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In this weekly close-only Point and Figure of GILD, below, we can see a potential longer-term price target in the $82 area.