Biotech Stocks: Gilead Sciences (GILD)
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.
Like what you see? Sign up for our daily Beat the Bell e-letter and get investment advice delivered to your inbox every morning!
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.