GILD may be ending a WXY pattern

2017年1月20日

A Seeking Alpha article based on GILD fundamentals popped up in email. The chart says it's clearly made 2 groups of 5 waves downward and roughly symmetrical down from the highs at 123. Which is a corrective ABC pattern.

The X wave rally was a good effort, but has obviously failed. So the pattern could terminate as ABC-X-ABC or WXY.
The oscillator trend channels are pretty clear on this chart and the 5 of C of Y leg appears to be an Ending Diagonal.

Looking left, there's an obvious low at 63.40 that could make a bottom.
If this thing touches off 64 and then puts in a couple strong Bull close candles, it's a buy with a target back at the highs of 123.
If you've ever traded these Ending Diagonals, the reversal is quite often amazing. Especially at the end of a C wave. I think it's a good gamble to make if the oscillators start diverging and the wave counts are there.

I think buy Calls or just buy shares outright.
It's still got a 3 of 5 of C of Y to play out so entry on this is probably more like April - May 2017.
Reward ratio could be 15:1 on this if long from 65 or 66.

I have no idea what GILD does. I trust that the Seeking Alpha analyst knows what he's talking about.