Gilead Sciences (GILD) has a couple of things working for it.
For starters, it has what I like to call an “echo” in its chart pattern.
That’s when the just completed move in price reflects very closely a previous move.
The 2nd thing that GILD has is a move down to my roadmap line – where it found support.
This confluence of 2 patterns provides a powerful setup. With an aggressive entry being to buy GILD on a move up above $82.50 (above the recent resistance highs). However, note that we have more resistance up in the zone below $86 so above $86 would be the more conservative entry point or a good point for an aggressive buyer at $82.50 to take profits.
The target is $92.50.
Whichever path you choose, wait for the move up because the whole setup gets to be invalid should the stock price dip below $76.
And for a watchlist filled with potential setups like this every week for the next 12 weeks for just $5 — sign up here.
Jeffry
