Gilead Sciences (GILD) could be ready for an upside breakout on the charts. Let's take a close look at the stock of the company behind the potential Covid-19 treatment remdesivir.
In this daily bar chart of GILD, below, we can see that the shares have been "chopping" sideways for about eight weeks but now prices are up at the upper end of this sideways pattern. GILD is above the 50-day and the 200-day moving averages.
The daily On-Balance-Volume (OBV) line has been showing strength all year even though prices show a very erratic up and down pattern most of the time. The Moving Average Convergence Divergence (MACD) oscillator is ready to cross above the zero line for an outright buy signal.
In this daily Point and Figure chart of GILD, below, we can see that a trade at $79.05 will be a breakout and an $86 price target is projected.
Bottom-line strategy: it looks like GILD is ready to make an upside breakout. Go long at $79.05 or higher. Risk a close below $74. The $86-$90 area is the target.
