Gilead Sciences Hovering Above Major Support Level
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Gilead Sciences, Inc. (NASDAQ: GILD) shares were trading lower $1.95 at $98.74 in Tuesday's session. The decline is taking place despite the company getting approval in Japan for Sovaldi, a hepatitis C treatment.
The once darling of the biotech sector has been in a nauseating trading range from $98.54 to $103.11 since March 10. The consolidation taking place after the issue swooned from its December 19 close ($108.45) to $89.45 only two days later when Express Scripts gave AbbVie exclusive Hepatitis C billing.
After rebounding nearly all the way, the issue climbed to $107.02 on January 27, but no further. From there it has been choppy trading until the recent consolidation.
In today's session, it has returned to test the bottom of the trading range. After a lower open, it could not regain Monday's closing price ($100.69), peaking at $100.20 shortly after the open. So far, the decline has taken the issue to $98.69, which is just shy off the lows of the recent trading action.
At this time, it has not been able to distance itself from the critical support level.
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