Chart Spotlight – Gilead

Truth be told, we’ve been anticipating a turn for Gilead for a long time and, sticking with the truth-telling, we thought it was going to happen in early 2020. Back then the stock went from 62 – 86, up almost 40%, in just two months but then it peaked and declined all the way to Dec 30, 2020, when it bottomed at 57. Lucy pulled the football away from Charlie Brown once again.

Gilead currently has a strong Technical Score = 4 and it’s thisclose to breaking above its August 2021 high. Aside from the robust Technical Score, other positive technical inputs include:

1. GILD is above its upward-sloping 200-day or 40-week moving average
2. Daily momentum is peppy, weekly momentum is in positive territory, and monthly momentum is also moving into positive territory.
3. The stock is also above its improving 12-month moving average and,
4. It is sitting at a 16-month high relative to the SPDR S&P Biotech ETF (XBI).

GILD is still in the middle of a BIG BASE that extends back to the autumn of 2016 so the stock still has work to do before it can be termed a breakout. But it is building on a technical basis, and we’d guess it’s also building on a fundamental basis, too. We believe this is a good spot to do some buying with the idea of building a bigger position as the stock improves.