GILD breaks back below 20-day moving average
Gilead Sciences Inc. (GILD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GILD ended Wednesday at 65.65 losing $0.55 (-0.83%), but still outperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 65.92, the stock confirmed its breakout through the prior session low after trading up to $0.31 below it intraday.
Daily Candlestick Chart (GILD as at Sep 16, 2020):
Wednesday's trading range has been $0.93 (1.4%), that's below the last trading month's daily average range of $1.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GILD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 65.16 (S1). Gilead Sciences closed back below the 20-day moving average at 65.71. When this moving average was crossed below the last time on July 22nd, GILD lost -0.90% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
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 300 times, GILD closed higher 57.33% 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 56.00% with an average market move of 0.77%.