4 Trade Ideas for Gilead Sciences: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Gilead Sciences, $GILD, comes into the week rebounding from a shallow pullback at the August high. That high was just shy of the 2015 all time high at 122.21 on June 23rd. This return high Friday made for another higher low continuing the trend higher. The RSI is rising in the bullish zone and with it making a lower low creating a Positive RSI Reversal and a target to 124.50. The MACD is curling to cross back up and move into positive territory. There is a brewing Cup and Handle as well with a target to 183 on a new 2025 high as well. There is resistance at 117.50 and 120.50 then 122.50. Support lower is at 112.75 and 110. Short interest is low at 1.5%. The stock pays a dividend with an annual yield of 2.75% and will trade ex-dividend beginning September 15th.

The company is expected to report earnings next on November 4th. The September options chain shows the biggest open interest at the 110 strike on the put side and at 125 on the call side. In the October chain the biggest open interest is found from 110 to 100 on the put side, and at 120 then 125 on the call side. Finally, the November chain has open interest spread from 115 to 90, biggest at 105 on the put side. On the call side it is biggest at 125 and 130.

Gilead Sciences, Ticker: $GILD

Trade Idea 1: Buy the stock on a move over 116 with a stop at 112.

Trade Idea 2: Buy the stock on a move over 116 and add an October 110/105 Put Spread ($1.25) while selling the November 130 Call (90 cents)

Trade Idea 3: Buy the October/November 120 Call Calendar ($2.35) while selling the October 110 Put ($1.95).

Trade Idea 4: Buy the November 105/120/130 Call Spread Risk Reversal (75 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first week of September in the books, saw equity markets held firm with some minor midweek profit taking despite some dismal employment data.

Elsewhere, look for Gold to continue the renewed uptrend while Crude Oil drifts in consolidation. The US Dollar Index continues to base , a change of character to consolidation, while US Treasuries continue to consolidate in their downtrend. The Shanghai Composite looks to continue the uptrend to new 10 year highs while Emerging Markets also continue their uptrend.

The Volatility Index looks to continue to hold at low levels, making life easier for equity markets to the upside. The chart of the SPY continues to look strong on both timeframes, closing just under Thursday’s all-time high but with some signs of consolidation. The QQQ has a short term warning sign with momentum fading as it consolidates over support but remains strong on the longer timeframe. The IWM more closely resembles the SPY, strong on both timeframes with some possible short term consolidation creeping in but measured against its 8½ month high. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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