The Critical Support Breakdown Trading Level for GILD

Jun 21, 2016: 2:10 PM CST

If you’re trading – or thinking about trading – Gilead Sciences (GILD), take a look at this key level right now.

Here’s the critical “Support or Breakdown” price area on which to base your trades right now:

Traders profited wildly from investing in Gilead Sciences from 2011 to 2015.

However, late 2015 into 2016 has been far less kind to investors as price plunged from $120 to the current $80.00 level (a 33% decline in a year).

For pattern-loving traders, a Head and Shoulders Reversal Pattern (complete with negative divergences) developed from 2014 to present.

We’re focusing on the Neckline or Support Pivot of the pattern at the $80.00 per share level.

The 200 week SMA overlaps the Neckline at the $81/$82 per share level.

With the divergences, distribution pattern, and decline in bullish volume, watch the $80.00 per share level.

IF buyers fail to bounce share prices again up away from this level (which would be an aggressive support-buy strategy), then it’s likely sellers will again command the stock to new lows on a breakdown and liquidation (sell) swing down away from $80.00 to lower levels such as $70.00 or $65.00 per share.

No matter whether you’re a GILD bull, bear, or neutral observer for educational purposes, focus on $80.00.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to

Follow Corey on Twitter:

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


2 Responses to “The Critical Support Breakdown Trading Level for GILD”

  1. Jafri Says:

    I enjoy trading with market in such situations since we can get great profits consistently without too much struggle, so that’s why we should always be ready to grab it. I love this blog for regularly helping us with these things, I also feel relaxed to do with OctaFX broker and their amazing facilities that includes massive rebate program where I am able to earn 15 dollars profits per lot size trade and that’s even with losing trades too which is just incredible.

  2. Says:

    There are more people are like to trading but they are be afraid for earn and loss. So i think this is the good tips for them to take encourage to do trading. For this they need to researh the trading market.