GILD finds buyers around 66.20 for the third day in a row
Gilead Sciences Inc. (GILD) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
GILD finished the week 1.55% higher at 66.36 after losing $0.63 (-0.94%) today, underperforming the Nasdaq 100 (-0.42%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GILD as at Jun 14, 2019):
Friday's trading range has been $0.78 (1.17%), that's below the last trading month's daily average range of $1.18. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GILD. Prices continued to consolidate within a tight trading range between 66.20 and 67.46 where it has been caught now for the last three trading days.
After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Black Candle showed up on June 6th, GILD actually gained 2.54% on the following trading day.
Prices are trading close to the key technical support level at 65.94 (S1). Gilead Sciences found buyers again today around 66.20 for the third trading day in a row after having found demand at 66.30 in the previous session and at 66.21 two days ago.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 67.46 where further buy stops could get triggered. Trading close to April's high at 68.07 we might see further upside momentum if potential buy stops at the level get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Gilead Sciences. Out of 68 times, GILD closed higher 60.29% 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 eight trading days, showing a win rate of 54.41% with an average market move of 0.22%.