NASDAQ:GILD may be ready to breakout.

GILEAD SCIENCES INC (NASDAQ:GILD) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:GILD.

What is the technical picture of NASDAQ:GILD telling us.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Taking everything into account, GILD scores 9 out of 10 in our technical rating. GILD has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that GILD is one of the better performing stocks in the market, outperforming 70% of all stocks. On top of that, GILD also shows a nice and consistent pattern of rising prices.
• GILD is one of the better performing stocks in the Biotechnology industry, it outperforms 90% of 631 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 a tight range between 69.94 and 74.12.

How does the Setup look for NASDAQ:GILD

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:GILD scores a 8 out of 10:

Besides having an excellent technical rating, GILD also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 71.66, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:GILD?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.