Gilead Sciences (GILD) has sunk to a new low for the move down today. Prices are retesting levels not seen since 2013. I don't know what the fundamental story is but the charts are still lower. We haven't done a review of GILD since July 27 and prices looked weak then. We wrote that, "Consider reducing your long exposure on GILD ahead of earnings." There was a Point and Figure chart of $69 noted.
Let's check it out again as prices are well below that bearish target.
In this updated daily bar chart of GILD, below, we can see that prices have been in a downward drive since late July. Prices are trading below the declining 50-day moving average line and the bearish 200-day moving average line.
The On-Balance-Volume (OBV) line has been weak since July and tells us that sellers of GILD have been more aggressive with heavier volume being traded on days when the stock has closed lower.
The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line since late July.