Gilead Sciences, Inc (GILD) is a biopharmaceutical company that specializes in antiviral drugs for HIV, hepatitis C, hepatitis B, influenza and COVID-19. More recently, the company diversified to cell therapy for oncology conditions. GILD is listed on NASDAQ and is a component of NASDAQ 100 and S&P 500 under Health Care.

This 12-months chart of GILD showed a very typical Wykcoff accumulation phase.

GILD price ended 2021 on a high of $71.50. However, the price subsequently reacted by drifting down. It eventually formed a low at around $55 on 10 March 2022. The volume during this Wyckoff sign of weakness (SOW) is higher, suggesting presence of supply.

During March to October, the price then moved in the range, slowly grinding up. It should be noted that higher lows were formed throughout this period, which is a bullish sign. Furthermore, there was no huge supply volume.

On 12 Sept, there was a localized spike in volume and the price gap up that day. However, the reaction was a minor pull back and form higher low than previously (29 Aug). All these seem to suggest an on-going Wyckoff accumulation. A strong momentum Wyckoff sign of strength (SOS) rally started on 24 Oct when the price was able to commit above $68, the immediate prior high.

With earning results as catalyst, the price broke out of the range on 28 Oct with a spike of volume. The follow through reaction pushed the price all the way to around $89.

Bias

Bullish. According to the Wyckoff trading method, GILD price will likely continue the bullish momentum until the occurrence of huge supply. The immediate target would be all time high at $96.40.

If price is unable to commit above $86, it may retest the swing low around $77 to $79, which could turn out to be a reversal trading opportunity. Recent volatility in the market makes it hard to find winning stocks. In spite of that, there are techniques that Wyckoff method could help pick these winning stocks. 

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