GILD Gilead Weekly Chart Cup and Handle (C&H) Target Achieved

Keystone highlighted the GILD C&H a year ago. As a technician, it is satisfying to see a pattern play out, especially over the long term since so much trading today occurs with quick mouse clicks over minutes, hours or days instead. GILD is a long term buy and hold success story but these stories are rare especially when factoring in the falling dollar over the last decade or two.

The C&H shown in red was text book. The blue break out line at 40, with a cup base at 32, targeted 48, the horizontal resistance above, which occurred over the last week. GILD earnings were lackluster but the guidance moving forward was spectacular amounting to the rocket ride over the last few days.

The chart illustrates some interesting buy points for a C&H pattern. Depending on your risk tolerance as a trader, a forward thinking technician would have realized the possibility of the C&H in progress during Fall 2010. Using the 20-week MA as support, a nice entry is realize as price decided to stay above the 20 (green circle). The middle green circle shows the breakout which could be bot. Typically, after the breakout, price comes back to back kiss that blue breakout line. Day and short-term traders ride the intial pop and exit before she comes back down. Then the third circle shows the test of the breakout line, as well as the 20 MA once again, and then once price shows it wants to receive support, the future was bright.

Note the indicators bottomed in 2010 and sloped positively (bullishly) ever since. 48 will serve as support moving forward. GILD has lots of momo now but needs a pull back. The smart, patient money received their reward over the last seven weeks.This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.