The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Missed the Gilead Surge? Here’s What You Need to Know About the Big Move

by admin July 26, 2024
July 26, 2024
Missed the Gilead Surge? Here’s What You Need to Know About the Big Move

In late June, Gilead Sciences (GILD) stock surged following positive results of a late-stage trial for its latest HIV drug. 

The big market buzz was that Gilead was on the verge of something huge, and investors were not about to wait around for proof. They dove in early, seeing the price jump as a prime “ground floor” opportunity.

Expecting a pullback, given the speculative nature of the spike, there were key levels where a bounce could occur, providing an opportunity for you to ride Gilead’s momentum, even if just for a swing trade. The bullish thesis worked out, so let’s examine what happened.

What Happened and Where’s GILD Going?

The Gilead chart below zooms in on the price action following the trial results. The big unknown at the time was whether the spike on June 20 was going to pull back, and whether a pullback would end the uptrend. 

CHART 1. DAILY CHART OF GILEAD SCIENCES. The stock price pulled back, and the levels projected in June have so far held. Chart source: StockCharts.com. For educational purposes.

Before the Pullback in the Stock Price

What made this decision point particularly difficult were the following:

  • A StockCharts Technical Rank (SCTR) score of 30 (see blue arrow) wasn’t by any means promising, but from a bullish perspective, it also meant the potential for a ground-floor entry.
  • The Chaikin Money Flow (CMF)  indicated that buying pressure was fading (see blue dotted line in the CMF indicator window), suggesting a pullback or resumption of the downtrend.

With strong bullish sentiment hinging on an upcoming FDA trial and shaky technicals aside from a solid breakout, a long trade might have felt like a coin toss, one slightly favoring the bulls. Hence, the importance of the key levels $68 and $66 and the 50-day simple moving average (SMA).

After the Pullback in the Stock Price

Let’s zoom in to the same chart above.

CHART 2. DAILY CHART OF GILEAD SCIENCES. Here, you can see the exact entry points and how prices respected the levels. Chart source: StockCharts.com. For educational purposes.

Here, you can see that the $66 support level converged with the 50-day SMA. GILD respected this level as buyers jumped in, anticipating a bounce, which they did get. Although the CMF entered negative territory, you can see how selling pressure began to fizzle out, and buying pressure overtook the bears.

As prices took out the June high, its pullback respected the $70.50 level (see second magenta circle), launching GILD to take out critical resistance right below $75 (see heavy blue dotted line).

The question is whether, upon a third pullback, the stock price will respect support at $75 and surge to (or beyond) $79. 

At the Close

You might be wondering if GILD is still a buy. It was a buy (emphasis on “was”), as the price action presented an ideal opportunity on the ground level. If you’re a longer-term investor, it would be wise to wait and see how GILD fares in light of its final testing period and FDA review process. 

If anything, the June GILD scenario underscores the importance of acting on key levels when the market flashes a fleeting opportunity amidst drastic (and bullish) fundamental and technical shifts. 



Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

0
FacebookTwitterGoogle +Pinterest
previous post
Karine Jean-Pierre praises Biden’s decision to exit 2024 race as ‘selfless act’
next post
After the Tech Bloodbath: Ways to Strategize Your Portfolio

Related Posts

SCTR Report: China Adds More Stimulus, FXI in...

September 27, 2024

The Best Five Sectors, #6

February 11, 2025

Technology Sector Participation Is Fading

June 7, 2024

These Groups Just Turned BULLISH!

August 20, 2024

These Sectors are Showing Strength as S&P 500...

May 24, 2024

NVDA & Mag 7 Breaking Down; Russell 2000...

July 12, 2024

The Most Efficient Way To Follow The Markets...

May 18, 2024

Financials Primed to Beat Tech in December!

December 3, 2024

3 S&P 500 Charts That Point to the...

June 23, 2025

Leadership Rotation Could Confirm Corrective Phase

May 31, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Microsoft says goodbye to the Windows blue screen of death

      July 1, 2025
    • Home Depot is buying GMS for about $4.3 billion as retailer chases more home pros

      July 1, 2025
    • Home Depot is buying GMS for about $4.3 billion as it chases more home pros

      July 1, 2025
    • Google makes first foray into fusion in venture with MIT spinoff Commonwealth Fusion Systems

      July 1, 2025
    • The Best Five Sectors, #25

      July 1, 2025
    • Pullbacks & Reversals: Stocks Setting Up for Big Moves!

      July 1, 2025

    Categories

    • Business (1,276)
    • Politics (3,883)
    • Stocks (1,480)
    • Uncategorized (45)
    • World News (1,269)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved