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Gilead Sciences, Inc.

10/22/13 04:35:29 PM
by Koos van der Merwe

A share to keep an eye on, but is it due for a correction?

Security:   GILD
Position:   Buy

Gilead Sciences Inc. is a research based biopharmaceutical company specializing in research for HIV infection.

Figure 1. Monthly chart of Gilead Sciences.
Graphic provided by: AdvancedGET.
The monthly chart in Figure 1 shows an Elliott Wave count suggesting the share price could be due for a correction. The chart suggests that the share price could be completing a Wave 3 of WAVE III after rising logarithmically from August 2010 from $15.61 to its present $68.23. The RSI indicator is at overbought levels, and although it has not given a sell signal yet, it is suggesting that a sell is on the cards sometime in the future, possibly after a WAVE V has been completed.

Figure 2. Daily chart of Gilead Sciences.
Graphic provided by: AdvancedGET.
The daily chart in Figure 2 shows an Elliott Wave count confirming the monthly count. The chart is suggesting that the wave count is in a wave (iii) of Wave iii of Wave V. The RSI is not in an overbought position suggesting that there is still upside.

Figure 3. Daily Omnitrader chart suggesting a strong BUY at present levels.
Graphic provided by: Omnitrader.
The chart in Figure 3 is the one that brought the share to my attention. The Vote line on the chart has given a buy signal based on the Red Green strategy Long 6 and Long stop. The Advisor rating is 56, a strong rating, suggesting that you should buy the stock for a short-term profit. The RSI indicator and TDI Jak indicator are suggesting a buy. The upper band of the Internal Band indicator supported the price at $46.79, and with the share price breaking above the Verve Trailing stop, a buy signal is suggesting a target of $50.05, the upper band of the external band.
I would be a buyer of Gilead Sciences, but for a short-term trade. However, on any correction to the lower band of the external band, I would be a buyer for the long-term.

Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
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Date: 10/24/13Rank: 4Comment: In this article there is mentioned the TDIJak indicator. Where can I find info on this indicator

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