Gilead stock (GILD) crashed despite the breaking positive news on April 20th which suggested they may have a potential cure for the COVID-19 which is caused by the new coronavirus. Should you consider buying the Gilead Sciences stock? If so, should you buy Gilead now or wait a bit longer? Once you buy, should you hold GILD stock long term to take advantage of the Gilead dividend payments, or should you take profit early at key resistance levels? More importantly, what type of investor should consider adding Gilead to their portfolio? Investors with high-risk appetite? Medium or low-risk appetite? This is certainly among my stocks to watch.
I’m going to conduct my Invest Diva diamond analysis or the IDDA for potential investment strategies for the Gilead stock.
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Gilead Stock Price Analysis – Fundamentals
Gilead’s antiviral drug was tested to treat Ebola patients — now it’s the most promising potential COVID-19 treatment. More specifically, the University of Chicago Medicine Hospital, where patients are participating in Gilead-sponsored remdesivir trials. Out of 125 coronavirus-infected patients who participated, 113 had severe symptoms. Most patients recovered in less than a week and 2 died. That’s a 1.6% death rate compared to the 4.9% overall US rate
Despite this, Gilead is not yet in my top ten must-haves in the Invest Diva’s premium investing group (PIG).
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Gilead Stock Technical Analysis – Weekly Chart
Everything I’m saying right now is purely my personal opinion. investing in the stock market and your other market involves a risk of loss and you should only trade the money that you can afford to lose. with that let’s take a look at the chart of GILD or Gilead stock. if we zoom out you’ll notice that Gilead has actually had a very nice growth since 1999 and which is high as high at $122 in 2015.
ever since it is actually broken below the Ichimoku cloud and it currently appears to be in the process of forming a double bottom bullish reversal chart pattern. so purely from a technical point of view, we can see that the bearish momentum may be coming to an end. if you look at the weekly chart you’ll notice
that it has already broken above the Ichimoku cloud. Check out my book Ichimoku Secrets.
normally when a stock or any kind of asset price breaks above an Ichimoku cloud we expected to have a pullback towards the upper band of the Ichimoku cloud.
Gilead Stock Technical Analysis – Daily Chart
on the daily chart it broke above the Ichimoku cloud after consolidating for quite a while in 2019. after that, of course, the
fundamentals of the situation changed. but after breaking a key resistance level at 84 which in fact was the 38% Fibonacci retracement level it is now
finally pulling back towards the Ichimoku cloud. the Fibonacci retracement level is tracking the downtrend from the highest high of 122 towards the lowest low of 60.
the combination of this shows that we could certainly from a technical point of view expect further gains for the Gilead stock but we will see further drops towards the upper band of at least the daily Ichimoku cloud which is here at around 74.
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