GILD dominated by bulls lifting the market higher throughout the day
Gilead Sciences Inc. (GILD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
GILD ended the month -1.14% lower at 76.94 after surging $2.38 (3.19%) today, strongly outperforming the Nasdaq 100 (1.96%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 76.56, the market confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (GILD as at Jun 30, 2020):
Tuesday's trading range has been $3.22 (4.33%), that's far above the last trading month's daily average range of $2.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GILD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on May 29th, GILD actually lost -3.43% on the following trading day. In spite of a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 100-day moving average at 74.95. Prices are trading close to the key technical resistance level at 77.85 (R1). After having been unable to move lower than 74.14 in the previous session, Gilead Sciences found buyers again around the same price level today at 73.94.
GILD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 78.00 where further buy stops might get triggered. As prices are trading close to June's high at 79.31, upside momentum could speed up should the market mark new highs for the month.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Gilead Sciences. Out of 109 times, GILD closed higher 55.05% 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 69.72% with an average market move of 1.88%.