Having spent considerable time recently highlighting stocks at the top of the SIA Relative Strength Matrix, today weâre focusing on some neutral (yellow zone) stocks that have shown increasing strength in recent months. These stocks are emerging as early leaders within the otherwise lackluster SIA Drug Sector. One such stock is Gilead Sciences (GILD), which is currently ranked #34 and has moved up 10 spots in the past month within the neutral zone of the SIA S&P 100 Index Report. As shown in the SIA Drug Sector Report clipping above, weâve highlighted Gilead and AbbVie in positions #4 and #5, respectively. From a performance perspective, Gilead is up 6.21% over the past month, 18.12% over the past quarter, and 14.47% year-to-date (YTD), compared to the iShares S&P 100 Index returns of -0.20%, 7.76%, and 24.50% over the same periods. This outperformance began in the past quarter, which has driven GILDâs rise on the relative strength matrix. This rally is also visible on the Point and Figure chart, where GILD's position is color-coded GILDâs within the SIA S&P 100 Index Report, which remains in the neutral zone (yellow). Notably, GILD has broken out of a double-top formation at $85.91 (highlighted in the chart). Resistance levels are initially at $100.65, with further resistance at $120.29. Support is currently at $82.57, with long-term support dating back to 2017 at $73.32. These support and resistance levels provide a broad view of potential price movement as we head into 2025. The SIA SMAX calculation now reads 9 out of a possible 10, indicating that Gilead is not only emerging as a leader among its peers but also outperforming many other asset classes.
AbbVie Inc. is another neutral-zone stock in the SIA S&P 100 Index, currently ranked #30, but in the #5 position within the SIA Drug Sector Report. AbbVie has also demonstrated strong performance, with 1-month returns of 4.00%, 3-month returns of 6.75%, and an impressive 34.09% YTD. AbbVie has outperformed the index on 1-month and YTD returns, while its 3-month performance is roughly in line with the broader index. In the attached Point and Figure chart, AbbVieâs position within the SIA S&P 100 Index has fluctuated between the favored (green) and neutral (yellow) zones throughout the summer of 2024. Recently, AbbVie broke out (as shown in the chart) with red resistance levels drawn at $237.66 and $262.39, based on prior consolidation zones. Initial support is at the 3-box level of $187.39, with further support at $176.58, and a broader support band between $156.80 and $153.73. AbbVie currently holds a perfect SMAX score of 10 out of 10, signaling that it is not only outperforming its peers in the drug sector but also excelling across other asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
