Merck's Death Cross Vs. Gilead's Golden Cross: Pharma Giants Diverge On Wall Street

Merck & Co. MRK and Gilead Sciences Inc. GILD are two pharmaceutical heavyweights whose stocks tell very different stories.

Rahway, New Jersey-based Merck just flashed a Death Cross, signaling potential trouble ahead. Foster City, California-based Gilead is basking in a Golden Cross, a sign of bullish momentum.

Merck: Treading On Thin Ice

Merck, known for its diverse lineup of drugs and vaccines, is seeing its stock wobble. Despite a decent climb of 8.72% over the past year, recent technical signals are turning sour.

Chart created using Benzinga Pro

The dreaded Death Cross—where the 50-day moving average dips below the 200-day moving average—has emerged, hinting at a bearish trend. With a MACD of a negative 0.81 and RSI heading towards the overbought territory at 53.93, Merck might need more than its strong pharma portfolio to avoid slipping further.

Read Also: Merck Pulls Plug On Two Keytruda Late-Stage Studies On Underwhelming Data

Gilead: Riding High On A Golden Wave

On the flip side, Gilead Sciences is soaring. The company, famed for its HIV and hepatitis treatments, is riding a Golden Cross—a bullish indicator suggesting more gains could be on the horizon.

Chart created using Benzinga Pro

Up 6.82% in the past month alone, Gilead's share price is well above its key moving averages. The MACD sits at a healthy 1.48, and with an RSI of 68.78, the stock is trending bullish, though investors should watch for signs of overbuying.

Who Wins?

As Merck flirts with bearish trends, Gilead is on a golden streak. Investors may want to keep a close eye on these diverging technical signals.

For now, Gilead seems to be the one with the golden ticket, while Merck might need a dose of something stronger to revive its stock.

Read Next:

• Gilead’s Ongoing Battle Against Counterfeit HIV Medications Persists With New Lawsuit, Seizes $750K In Fake Drugs