The stock gapped up to a new high following positive results from a study for its Hepatitis C treatment. However, Gilead suffered two setbacks this week when the FDA declined to approve two of its HIV drugs.
With GILD up 35% from our initial buy point, the FDA rejections coupled with the Collins-Bollinger Reversal (CBR) sell signal last week and an MACD sell signal, tell us that it’s time to cash in the profits on GILD.
However, this high-quality biotech is not a short-sale recommendation. In fact, if the stock were to pull back to support below $43, it would again be a candidate for our buy list.