GILD Stock: S/T Technical's Weakening, Mid to L/T Positive
GILD stock is taking a breather today declining by 1.15%. The S/T technicals are trending lower, including MACD, 5/13 day EMA. GILD has dropped below the 20 day SMA. Stock could challenge high $ 52's support level by early next week. Absent unanticipated positive catalysts from ASCO, the S/T bias is negative. The expected news from ASCO was already reflected in the share price. Mid to L/T the technical's are favorable.
Insiders may have anticipated the " sell on the news " phenomenon. Corporate officers and Directors including the CEO, CFO, and Chief Science Officer, have sold 2.6 million share, in 26 separate transactions, with most recent price of $ 50.17- $ $52.88. Concurrently, large institutional investors have sold nearly 43 million shares.
One additional measure of near term investor sentiment is the largest number of open orders for the June 22 option puts is $ 50.00.
Any one indicator is just a data point, but weakening stock technical's, high senior officer and institutional investor selling, large negative option interest, and a declining share price suggest that the stock is likely to test the low $ 52's support level.