The pop came on news that Gilead has priced its remdesivir treatment, which has made serious headway in the fight against Covid-19. Other coronavirus vaccine players include AstraZeneca (AZN) - Get Report and Moderna (MRNA) - Get Report.
The company is pricing it at $390 per vial, with a five-day treatment course costing $2,340.
While the morning rally was nice for Gilead, the stock continues to struggle with a move to new highs.
When the stock market was getting crushed in March, Gilead shares were rallying on hopes the company would ultimately find a treatment or cure for the coronavirus. Shares popped to the highest levels since 2016.
However, after topping out at $85, the stock has since been rejected by this level twice. What do the charts look like now and is there a chance that Gilead could head to new highs?
Trading Gilead Stock
Shares of Gilead stock have been trading pretty well this year, all things considered. After failing at $85, shares pulled back and found support at the 100-day moving average.
Now, Gilead continues to ride this moving average higher, while finding resistance near $77.50. In fact, the stock is setting up in an ascending triangle pattern.
That’s where rising uptrend support (blue line) continues to squeeze a stock price higher against a static level of resistance. In this case, $77.50 is the resistance.
A move over $77.50 puts $80 in play. If Gilead stock can close over this level, it puts another retest of the $85 level on the table. Investors and traders will be looking for another break out attempt should this situation play out.
On the downside, see if Gilead Sciences can continue to hold the 100-day moving average and uptrend support. A break below weakens the bull case and puts $72 support in play.
Below $72 and the 200-day moving average is potentially in play.
In short, look for a close below the 100-day moving average or over $77.50. Then trade accordingly from level to level.