Take the Money and Run in This Biotech

by Sam Collins | May 1, 2013 1:33 am

Gilead Sciences (NASDAQ:GILD[1]) — On Nov. 19, with the stock trading near $37.50, the Trade of the Day[2] recommended it, saying, “This large-cap biotech is well positioned to gain market share.”

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.

GILD Chart
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Trade of the Day Chart Key[3]

  1. GILD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GILD
  2. Trade of the Day: http://investorplace.com/2012/11/trade-of-the-day-gilead-sciences-nasdaq-gild/
  3. [Image]: http://investorplace.com/wp-content/uploads/2011/04/chart-key.gif

Source URL: http://investorplace.com/2013/05/trade-of-the-day-gilead-sciences-nasdaq-gild-3/
Short URL: http://invstplc.com/1nGClk4