GILD closes within prior day's range after lackluster session
Gilead Sciences Inc. (GILD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
GILD finished Thursday at 73.86 gaining $4.20 (6.03%) on low volume, slightly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. 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 Mar 26, 2020):
Thursday's trading range has been $4.15 (5.94%), that's below the last trading month's daily average range of $5.39. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GILD. Prices continued to consolidate within a tight trading range between 69.34 and 75.83 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. After moving lower in the prior session, the market managed to close higher but below the previous day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 73.75. When this moving average was crossed above the last time on Tuesday, GILD actually lost -5.81% on the following trading day. Prices are trading close to the key technical resistance level at 75.41 (R1). After having been unable to move lower than 69.34 in the prior session, Gilead Sciences found buyers again around the same price level today at 69.75.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 75.83 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 69.34 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Gilead Sciences. Out of 45 times, GILD closed lower 55.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 55.56% with an average market move of 0.09%.