GILD closes below its opening price unable to hold early session gains
Gilead Sciences Inc. (GILD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, GILD finished the month -9.63% lower at 69.53 after tanking $2.80 (-3.87%) today on high volume, significantly underperforming the Nasdaq 100 (1.78%) following Thursday's earnings report. This is the biggest single-day loss in over a month. Today's close at 69.53 marks the lowest recorded closing price since March 16th. Trading $1.10 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GILD as at Jul 31, 2020):
GILD reported earnings of $1.11 per share after Thursday's market close. With analysts having expected an EPS of $1.46, Gilead Sciences Inc. missed market expectations by -24.0%. The company's last earnings report was released on April 30, 2020, when Gilead Sciences Inc. reported earnings of $1.68 per share surpassing market expectations by 7.0%.
Friday's trading range has been $2.31 (3.31%), that's far above the last trading month's daily average range of $1.55. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GILD.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on July 9th, GILD actually gained 2.15% on the following trading day.
The market closed below the 200-day moving average at 71.24 for the first time since January 31st.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 75.40.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for Gilead Sciences. Out of 24 times, GILD closed higher 66.67% 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 66.67% with an average market move of 2.94%.