GILD declines to lowest close since December 24, 2018
Gilead Sciences Inc. (GILD) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, GILD ended Monday at 61.87 losing $1.08 (-1.72%) on high volume, strongly underperforming the Nasdaq 100 (0.31%). Today's close at 61.87 marks the lowest recorded closing price since December 24, 2018. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GILD as at Apr 22, 2019):
Monday's trading range has been $1.78 (2.84%), that's far above the last trading month's daily average range of $1.26. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GILD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 63.23 (R2), the share closed below it after spiking up to 63.33 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on October 10, 2018, GILD lost -3.05% on the following trading day. After having been unable to move lower than 61.56 in the previous session, Gilead Sciences found buyers again around the same price level today at 61.55.
Crossing below the lower Bollinger Band for the first time since March 7th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 65.20 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 61.50, downside momentum could speed up should the market break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Gilead Sciences. Out of 123 times, GILD closed higher 61.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.23% with an average market move of 2.03%.