Sunday, November 24, 2013

GILD Gilead Sciences Weekly Chart Bull Flag Overbot Rising Wedge Negative Divergence Price Extended

Gilead is a high-flyer this year. From 5 in 2004 to 75 in 2013, +1400%, a 15-bagger, in 8 to 9 short years. Also, from 15 to 75, +400%, a 5-bagger, in the last 2 or 3 years. Future Fed Chair Yellen does not see any asset bubbles in markets; everything looks perfectly fine. The bull flag off the bottom in 2004 shows the first leg from 5 to 30, then the sideways to sideways lower consolidation flag, and then the second leg from 15 creates the target at 40 that was easily achieved. Price explodes higher during the ongoing biotech orgy this year. The strong biotech sector is very instrumental in the small cap RUT printing new highs this year.

The red lines show the negative divergence and the pink dots show the price extended well above the moving averages requiring a mean reversion (lower prices). In the near-term, the short green lines want to squeeze out a jog move, down-up-down over the next 1 to 3 weeks and that may very well lock the top in place at, say, 74.20-76.30. The 30-50 range would not be surprising in 2014. Perhaps the biotechs are next to roll over like the tech and other high-flyers recently like TSLA? This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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