The Critical Support Breakdown Trading Level for GILD
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.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
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).
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