Good News?

If “good news” doesn’t make a stock rally, what will?  Shares of Gilead Sciences (GILD) have gapped higher twice in the last week, first on earnings release and then on swine flu H1N1 flu news.  The interesting thing is that the average price after these two gaps higher is approximately 46.83, meaning the average purchaser is losing money and that could add further pressure to the stock as they grow frustrated.

The inset chart is a weekly timeframe and you can see that sellers have been able to halt the stock below the declining 200 day/40 week (green) moving average.

Subscribers stay tuned for possible entry levels.


Comments are closed.

  • Brian Shannon

    Brian Shannon is a full time trader (with 17 years of experience), educator and author of the highly regarded book Technical Analysis Using Multiple... More »

    Follow me on: Twitter and StockTwits


  • Try Now

  • Stay current with news and updates

    Subsribe
    via RSS
    Subscribe
    via Email
  • Technical Analysis Using Multiple Timeframes

  • Sign up for your FREE Daily Goodness e-mail delivered each morning with the latest investment news.

    Which update would you like to receive?

    Overheard on StockTwits

    Chartly Technical Knockout

    AR Energy

    Macro Weekly

    AR Options

    The official StockTwits™ newsletter

  • Archives

  • Tag Cloud

  • Try Now