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 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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