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The Gilead Sell Setup

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A look at the charts indicates that this big biotech stock could break down in the near-term.

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A Minus One/Plus Two sell setup occurs when the 3 Day Chart is pointing down (the Minus 1) followed by two consecutive higher daily highs (the Plus 2).

Gilead (GILD) turned its 3 Day Chart down yesterday as it made 3 consecutive lower daily lows.

The stock initially reacted bullishly, tracing out a large range outside up day.

However, this morning's high above yesterday's put GILD in the Minus One/Plus Two sell position.

The setup coincides with a test of the overhead 20 day moving average for a Holy Grail Sell signal.

Note how GILD glided up its 20 dma throughout the summer with a successful test in July. A turndown here from a test of the 20 dma would indicate a possible change in behavior.

See GILD daily from July here w/ 20 dma:



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No positions in stocks mentioned.

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