GILD closes lower for the 3rd day in a row
Gilead Sciences Inc. (GILD) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GILD finished Monday at 74.56 edging lower $0.01 (-0.01%), notably underperforming the Nasdaq 100 (1.14%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GILD as at Jun 29, 2020):
Monday's trading range has been $2.41 (3.15%), that's slightly above the last trading month's daily average range of $1.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GILD.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Black Candle showed up on June 17th, GILD actually gained 0.38% on the following trading day.
The stock shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could speed up should prices move below the nearby swing low at 73.73 where further sell stops might get activated. Trading close to April's low at 71.38 we could see further downside momentum if potential sell stops at the level get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Gilead Sciences. Out of 301 times, GILD closed higher 57.81% 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 57.14% with an average market move of 0.86%.