Gilead Sciences Inc. ($GILD) has not moved above $86.00 several times this year. After the last failed attempt, a new downward trend started on July, 20. It dropped its value to a low of $61.64 in late September.
In the days that followed, buyers managed to float the stock in an upward trend. It continues today, so the price could top to $64.68. From the bull’s point of view, it would be important if a weekly closing price could be formed above or near $65 today.
What news is the stock boosting today?
Gilead announced today that it has an ample supply of Remdesivir for hospitalized COVID-19 patients. It is expected that Remdesivir will be sufficient for coronavirus treatments worldwide by the end of October. Peer-revised final data that got released yesterday, showed that hospitalized patients receiving Remdesivir recovered an average of five days faster. This has been compared to a placebo and standard care. In addition, patients have a 50% higher chance of recovery, 15 days after the treatment. This was also compared to those who received a placebo earlier.
Remdesivir received Food and Drug Administration (FDA) approval in May as a treatment for critically ill patients. At the end of August, the authorization was extended by the FDA by making the drug accessible to all hospitalized patients, regardless of whether the patient is in mortal danger. This treatment inside hospitals has now been approved by regulatory authorities in over 50 countries.
Remdesivir was part of the various treatments President Donald Trump received earlier this week, after he announced last friday that he had tested positive for COVID-19. Next to Remdesivir, Trump received an “experimental antibody cocktail” from Regeneron Pharmaceuticals and the steroid Dexamethasone.
Are investors starting to doubt more?
Back to the numbers! If a weekly closing price could be formed above or near $65 today, it would give buyers the option to continue climbing to the 50-day average next week. This is still pointing down slightly and is now trading at $66.04. If the moving average can be broken significantly, the rise could continue until the resistance at $67.92.
If the stock doesn’t make or break the 50-day average, it threatens to fall back to the September, 24 low of $61.64. If this level cannot be sustained, the stock should initially fall back to its February, 3 low of $64.07.
Which way does the coin stand out?
It is no rocket science to see that several COVID-19 vaccines are reaching the finish line. The FDA is becoming more flexible with the administration of drugs against COVID-19 and various pharmaceutical companies have announced that a vaccination is ready ad stored to be delivered worldwide.
This makes it increasingly important for investors to look at the figures that move the share. What is the potential and how much can the share increase in the event of a strong development regarding the vaccine? This means that Gilead’s figures are not the strongest on the market, which despite the good developments, increases the doubts among several investors. A hold-rating is given to the GILD-share by several analysts with a lower potency-grade than in August.
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