Since my last post, Gilead Science has rebounded off $41 and has been consolidating in the mid-40s range.
There is a chance that it may breakout of its range in the coming 2 months.
Previously, I have warn that GILD exhibits a bearish Tenkan sen – Kijun sen cross.
Yesterday, GILD exhibit an abnormal behaviour (and a more worrying bearish trend).
While the major indices rose more than 3%, GILD actually got sold down.
From the chart, you can see that throughout May, there has been more selling than buying. Only exception is when the ‘swine flu’ news or ‘H1N1’ news break out.
Points to note:
1. It break another support level at 43.69 on a day where the indices are up
2. The volume is above average which suggest that there is a fair amount of selling and not an issue of just profit taking.
3. More down days than up days in May.
4. Look at the ‘kumo’ or ‘cloud’ beyond the current date. We can clearly see that it has start trending down.
After the gap up due to the ‘swine flu’ news, GILD has been trading downwards since.
To the point that a bearish signal is now sighted on the Daily Chart.
1. As can be seen, Tenkan sen has cuts Kijun sen. And with so many consecutive down days, it is definitely a signal to take note of.
2. Support level is sighted at 43.80; a level that has been supported 3 times this year.
3. For those holding long positions of GILD, that is a level to take note of. Take care out there. The major indices are hitting resistant levels soon and may turn down as well.