GILD runs into sellers around 67.66 for the third day in a row
Gilead Sciences Inc. (GILD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GILD ended the week -1.9% lower at 67.56 after gaining $0.76 (1.14%) today, outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.37 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 30th, GILD actually lost -1.30% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GILD as at Feb 14, 2020):
Friday's trading range has been $0.62 (0.92%), that's far below the last trading month's daily average range of $1.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GILD. Prices continued to consolidate within a tight trading range between 66.32 and 67.82 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
Prices are trading close to the key technical support level at 66.75 (S1). Prices are trading close to the key technical resistance level at 67.88 (R1). Gilead Sciences ran into sellers again today around 67.66 for the third trading day in a row after having found sellers at 67.77 in the prior session and at 67.82 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 66.32 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for Gilead Sciences. Out of 28 times, GILD closed higher 60.71% 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 60.71% with an average market move of 1.80%.