Based on good technical signals, GILEAD SCIENCES INC is potentially setting up for a breakout.

Our stock screener has flagged GILEAD SCIENCES INC (NASDAQ:GILD) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NASDAQ:GILD for potential movement.

In-Depth Technical Analysis of NASDAQ:GILD

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, GILD scores 8 out of 10 in our technical rating. Although GILD is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• The long and short term trends are both positive. This is looking good!
• GILD is one of the better performing stocks in the Biotechnology industry, it outperforms 77% of 565 stocks in the same industry.
• GILD is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so GILD is lagging the market slightly.
• In the last month GILD has a been trading in the 89.15 - 94.65 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, GILD did better than 77% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

For an up to date full technical analysis you can check the technical report of GILD

Why is NASDAQ:GILD a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:GILD has a 9 as its setup rating:

GILD has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 92.32, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NASDAQ:GILD

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Of course, there are many ways to trade or not trade NASDAQ:GILD and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.