Why This Analyst Thinks Gilead's Technicals Are Setting Up For A Break
Anne-Marie Baiynd was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.
With the news Friday that Gilead Sciences, Inc.'s (NASDAQ: GILD) drugs Sovaldi and Harvoni may cause heart trouble in patients also on amiodarone, analyst Ann-Marie Baiynd took a look at what the technicals might say. Baiynd said that Gilead is in a wedge formation, and expects that "something is going to break." Given a choice between the long and short sides, Baiynd expects the stock to move lower.
The stock has bounced off the pre-market lows, but Baiynd warned that the morning action was a "big red flashing sign." Whereas in the past, Baiynd always felt comfortable with buying the stock at $98 to $99, she urged caution on this go around.
Related Link: Gilead Shares Tumble On Drug Warning; Baird Says Buy
Baiynd expects the stock to fail at the $101 and $102 level, before moving lower to $95 and $96. If the stock moves below the $95.80 level, "it will really be the kicker."
Shares traded recently at $100.37, down 1.88 percent on the day.
Check out the full interview below:
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