Gilead Sciences (GILD) - Get Report is up sharply Wednesday but investors should not be too surprised. We said in recent update , "GILD only turned positive in late June, so we are not far off the lows, with plenty of room on the upside. Aggressive traders could buy available weakness, risking a close below $68. Add to longs on a close above $76, looking for gains to around $86." With GILD now trading around $80 we want to adjust the parameters.

In this daily bar chart of GILD, below, we can see how prices have surged past its early August high. The 50-day moving average line continues its strong move higher and the flat 200-day moving average line could soon turn positive. The daily On-Balance-Volume (OBV) has confirmed the price strength as it has made a new high for the move up signaling aggressive buying. The daily Moving Average Convergence Divergence (MACD) oscillator is crossing to the upside above the zero line for a fresh outright go long signal.

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In this updated Point and Figure chart, below, we can see the rally to $80 and a new higher potential price target of $88. There is not much chart resistance above $88 so further gains are possible.

Bottom line -- even novice chart readers will recognize the breakout on GILD today. Prices could pause or "rest" in the short-run, but further gains to the upper $80's are anticipated. Raise stop loss protection to a close below $72.

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