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3 Biotech Stocks That Could Keep Bombing

Many investors expect a rebound in biotechs and biotech ETFs like the IBB. But solid ground might be a ways lower from here.

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Biotech Stocks: Gilead Sciences (GILD)

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And then there is Gilead Sciences (GILD), arguably one of the biotech stocks with the biggest cult following by investors and traders alike.

Over the past couple weeks, GILD stock touched its 200-day moving average (red line) for the first time since late 2011. Yesterday, GILD stock snapped its 200-day MA and also fell out of a so-called bear flag pattern (black parallels), which could move Gilead shares toward the $60 area in the near future. That’s almost 10% lower from here.

Although GILD stock did take little breathers along the way, ultimately its slope got too steep. The trend-following crowd quickly got cold feet as GILD broke its trendline in early March.

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Download Serge’s trading plan in the Essence of Swing Trading e-book here. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, http://investorplace.com/2014/04/biotech-stocks-amgn-biib-gild/.

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