• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

What's Going On With the Share Price of Gilead?

The charts tell me there's trouble here.
By BRUCE KAMICH
Oct 29, 2020 | 02:15 PM EDT
Stocks quotes in this article: GILD

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. 

 
In this weekly bar chart of GILD, below, we went back 10 years to show that prices have not been this low since 2013.
 
The OBV line looks like it has been weakening since late 2018 and the slope of the 40-week moving average line is negative. The MACD oscillator is bearish too.  
 
 
 
In this weekly close only Point and Figure chart of GILD, below, we can see a potential price target of $40. Not pretty. 
 
 
Bottom line strategy: I am not the person to ask about the fundamentals driving GILD but the charts tell me there is "trouble in River City".
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: Drug Approvals | Investing | Stocks | Technical Analysis | Trading | Pharmaceuticals | Coronavirus

More from Investing

Carnival Traders Are Voting With Their Feet

Bruce Kamich
Jun 29, 2022 10:38 AM EDT

Let's review the charts and indicators.

Bed Bath & Beyond Goes From Bad to Really Bad: Here's How to Trade It

Stephen Guilfoyle
Jun 29, 2022 10:30 AM EDT

BBBY just released the firm's first quarter financial results. It reads like fiction.

Bearish Sentiment Is at Decade Highs -- And That's Very Bullish

Guy Ortmann
Jun 29, 2022 10:25 AM EDT

Support levels have held and need to stay in that condition.

Losses Keep Piling Up in 2022 for This Portfolio of 2021 Losers

Jonathan Heller
Jun 29, 2022 10:00 AM EDT

In past years the Tax Loss Selling Recovery Portfolio has performed pretty darn well versus the broad indexes; that isn't the case this year.

Upstart Looks Anything But Up on the Charts

Bruce Kamich
Jun 29, 2022 9:46 AM EDT

The shares are in a sharp downdraft from their zenith in October.

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.

Email

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

Already a Subscriber? Login

Columnist Conversation

  • 11:56 AM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    Check out what's going on in the Stocks Under $10 ...
  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login