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  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".
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TAGS: Drug Approvals | Investing | Stocks | Technical Analysis | Trading | Pharmaceuticals | Coronavirus

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