GILD, MGNX & TSRO
All of the below charts are 5 year monthly candlestick charts to review the longer-term trend for each company.
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This long-term trend review is for Gilead Sciences, Macrogenics & Tesaro (GILD, MGNX & TSRO), all companies in the biotechnology field. Let’s start reviewing some charts!
Gilead Sciences (GILD)
Gilead Sciences (GILD) was a member request back near the end of 2016 as its share price was searching for a bottom. That previous update can be accessed here “12/10/2016 – Gilead Sciences (GILD)“.
At the time of the update, GILD’s share price was approximately $72. GILD’s share price is now $69.29 and appears to be in the process of attempting a rebound. In that December 2016 article, I mentioned
When there is a wave 3 extension such as GILD’s, the most common pullback is to the area of wave 4 within the wave 3 extension. This area is the $63 area.
Since that December 2016 article, GILD’s share price reached a low of $63.76 just last month.
Reviewing GILD’s Bounce From the $63 Support Area
Any retest of the $63 support area is[s2If !current_user_can(access_s2member_level1)]……
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I review long-term support areas for each of the companies.
If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] an opportunity to make a scale-in purchase if you haven’t already.
The MACD Histogram has been showing decreasing selling volume for several months in a row. Decreasing selling volume is typically an early indicator that the bottom is in or near.
Matter of fact, let me just re-post part of my summary from the December 2016 as it is still applicable:
However, there is enough technical evidence to begin scaling into shares in the $57 – $63 range. These prices could be the best you will see for GILD in a while, at least until it re-tests that range once again before breaking out for good. But for longer-term investors, picking up shares at $60 or lower will yield more than a 3% dividend, effectively getting paid while at the bottom of a new potential uptrend. Not a bad deal.
Macrogenics (MGNX)
A couple of bullish reversal candlestick patterns for Macrogenics (MGNX) were noted in the Idea Chamber a couple of weeks ago. That was on a weekly chart for MGNX. This monthly chart is showing MGNX’s share price is still deciding its long-term fate. It does not reflect the bullishness of the weekly chart.
Analyzing MGNX’s Chart for Signs of a Rebound
The MACD Histogram is showing a slow down in selling momentum, a positive factor. However, if at any point MGNX’s share price prints a $16.62 during July 2017, then lower prices are ahead for the next couple of months. The $16.62 price level is very important to monitor from an Elliott Wave perspective.
I will give my MGNX trade to the $23 area until the end of August 2017. If MGNX’s share price closes around the $19 – $20 area by the end of July, then the $23 price target should follow by the end of August 2017. However if I see a print of the $16.62, I will most likely take a short-term loss and look to re-enter the trade at lower prices.
Tesaro (TSRO)
Tesaro (TSRO) has been in a consolidation period for several months now, and additional downside risk still remains. During its consolidation, look for a rebound from the $125 area. If that does not happen, another 10-15% pullback may still develop.
Analyzing Long-Term Support Areas for TSRO’s Share Price During Its Consolidation Period
The support area for a 3 White Soldiers candlestick pattern is in between the closing share price of the 1st candlestick and the opening share price of the 3rd candlestick. That provides for a long-term support area of $100 – $120.
If you are currently long shares, you may have to hold on through a little more pain over the next month or two during any additional pullback. If you are looking for an entry to purchase shares, any pullback into the long-term support area is your opportunity.
Once this last leg of the pullback is over, TSRO should be ready to start its next Bullish Impulse wave pattern to the upside and potentially re-test its previous high.
GILD, MGNX & TSRO
None of the charts for the above biotechnology stocks (GILD, MGNX & TSRO) say “buy me now”. Yet, most of them are within a stone’s throw distance of a strong support area.
If GILD, MGNX or TSRO have been on your radar for any length of time, consider using the support areas identified for each to start a scale-in process and purchase shares.
For those holding shares of these stocks, a little more patience may be required to reap the benefits of new uptrends.
Good luck trading!
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