GILD closes within previous day's range
Gilead Sciences Inc. (GILD) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GILD ended Monday at 76.68 gaining $0.36 (0.47%), strongly outperforming the Nasdaq 100 (-2.16%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (GILD as at Jul 13, 2020):
Monday's trading range has been $2.39 (3.12%), that's above the last trading month's daily average range of $1.80. Weekly volatility is also higher, being slightly above 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 Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Shooting Star.
Unable to break through the key technical resistance level at 78.00 (R1), the stock closed below it after spiking up to 78.34 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 19th, GILD lost -2.32% on the following trading day.
Gilead Sciences shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying might move prices higher should the market test June's nearby high at 79.31.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Gilead Sciences. Out of 226 times, GILD closed higher 50.44% 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 53.54% with an average market move of 0.83%.