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.