PreMarket Prep Stock Of The Day: Gilead Sciences

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

For those who don't have the time to tune in live or listen to the podcast, Benzinga will highlight one stock that merits further discussion. This analysis is not a buy or sell recommendation.

There weren't a lot of movers to cover on today’s PreMarket Prep Show, but a positive announcement by Gilead Sciences GILD took the issue higher and provided a much-needed boost to the futures market.

The News: Midway through the show, Gildead announced that recent data from testing of its remdesivir drug showed improved clinical recovery along with reducing the death rate for patients. Keep in mind, the issue has moved higher off similar news with the drug, but often does not hold the gains for an extended period of time.

Price Action: The issue was trading around unchanged for the session at $74.71. The news instigated a brisk move to $76.97 before some profit-takers came into the marketplace.

PreMarket Prep Take: As the issue backed off the pre-market high, the author of this article noted the significance of the $77 area and how it will be an important level for the remainder of the session. The reason being, traders looking for more on the upside whether the move would continue or fade as it had in the past.

Based on the daily charts, the issue already had two days of previous highs in the area from earlier in the week. On Tuesday, it peaked at $76.96 and on Wednesday at $77. With the issue not able to breach that level in pre-market trading, it's evident the sellers at the level aren't finished.

After a higher open, it had a brief dip to $75.52 and then resumed its move higher. As of 12:15 p.m. EST, the high for the stands at $76.85.

Moving Forward: Resistance is resistance until it's breached. For now, Gilead bulls may have to wait another day for the issue to clear that level. Besides one daily high from Monday at $77.66, the next stopping point for the issue may be at its June 19 high of $78. In order to clear its trading range from May, it would need to clear $80.92.

The full discussion of the issue from today’s show can be found here: