Gilead Science Inc.  (GILD) - Get Report is extending Tuesday's high volume gain. This impressive move has driven the stock to fresh June highs as a major bottom begins to take shape. Gilead is leaving behind a very solid base and, like much of the Biotech sector, is setting up well for more upside.

Gilead has been very listless for the last four months. This sideways to lower action began with a devastating breakdown following the company's fourth-quarter earnings report. The stock fell nearly 9% on the news as volume surged to its heaviest level in years. Gilead quickly recovered but the massive amount of supply left behind after the Feb. 8 collapse provided extremely heavy overhead pressure. The stock continued to drift lower and by mid May new 2017 lows were reached.

Earlier this month the research-based biopharmaceutical company successfully retested the May lows as a positive divergence in the MACD indicator developed. This week the stock has begun to attract bullish attention and is now gaining steam off major support near $64.00. As this fresh rally leg develops investors should take on a much more positive view of the stock. Gilead has solid support in place from the $67.00 to $66.00 area. A dip down to this zone would provide patient bulls with a low-risk entry opportunity. On the downside, a close back below $63.50 would violate the June low indicating more basing is ahead before a new rally can begin.

Gilead's shares were unchanged at $70.49 by Friday's close.

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Long GILD