Gilead Sciences, Inc. (NASDAQ: GILD)
Gilead Sciences has had a great week in the market this week. After Monday’s decline, the stock skyrocketed on Tuesday and has been meeting resistance in the $105.64 and support around the low $104’s. However, I think another breakout is coming. Here’s why….
Technically GILD Looks Like It’s Gearing Up
From a technical standpoint, GILD looks great! Just look at the chart below….
It’s clear that the stock is staying within the support and resistance points for the time being, but I see something else. I looks like the support line is actually trending up…
All in all, to me, this is a clear indication that we’re going to continue to see growth from this stock, and that a breakout above the $105.64 mark is coming relatively soon!
Gilead Sciences Is Also Great From A Long Term Fundamental Approach
Fundamentally, GILD is a great long term investment. The reality is that there has been quite a bit of chatter about expiring patents on its hepatitis C treatments. However, they’ve already begun to make changes that will solidify their place as the leader of the market. The bottom line is that this isn’t the first time GILD has been faced with competition, and it’s not the last. With that said, I couldn’t imagine the 30-40% reduction some analysts are calling for in hep C revenue. Also, the company has a strong hold on the HIV market. Between the two, I’ll continue to expect to see big things!
What To Expect Moving Forward
Gilead Sciences stock looks like a great option in both the short term and long term spaces. The reality is that strong market support insinuates that in the short term, we’re going to continue to see growth and will most likely see another breakout relatively soon. In the long run, the fundamental data tells us that this company will continue to control the hep C and HIV markets for some time as it continues to innovate more effective and less intrusive treatments for the ailments. So, I couldn’t imagine seeing any major short term or long term declines.
What Do You Think?
Where do you think GILD is headed and why? Let us know in the comments below!