Momentum Stock: Viking Therapeutics

Viking Therapeutics Inc is a clinical-stage biopharmaceutical company and is focused on the development of therapies designed to treat metabolic and endocrine disorders. This includes conditions like fatty liver disease and type 2 diabetes, which have been on the rise globally.

The stock's price performance has been quite remarkable in recent periods. The share price has shown a steady increase over different timescales, with particularly impressive growth over the past six months and one year, seeing a 499.75% and 945.06% surge respectively. The year to date growth is at 164.96%, showcasing a persistent bullish trend for Viking Therapeutics.

The Relative Strength Index (RSI) of 65 indicates that the stock is currently close to the overbought territory, suggesting a strong momentum in the stock's price. It also hints at potential future price corrections, which is common after periods of rapid growth.

However, investors may want to approach this stock with caution despite its impressive performance. Biotech stocks like VKTX can be quite volatile due to the binary nature of clinical trials results. Positive outcomes can result in significant stock price appreciations, as we might be seeing here. On the other hand, a failed clinical trial can drastically affect the stock price in the opposite direction.

Moreover, Viking Therapeutics, as a clinical-stage company, likely doesn't have a product on the market yet, meaning it probably doesn't have revenue or profit to fall back on. This can be a point of concern as it makes the stock's performance heavily reliant on the successful development and subsequent approval of its therapies.

Stocks like this are HIGHLY speculative and trying to time any kind of an entry can be difficult. It has just had a 10% pull back and regained most of it quite quickly. It could continue to run, who knows. If you decide to trade it, keep a close eye on it. A trailing stop loss of around 15% would have kept you in most of this trade. If it broke below that it could have been a good sign to exit and look for a new entry when the trend resumed.

As always how you interpret and decide to act on any results is up to you. This is just data not financial or trading advice and past performance is in no way any guarantee of future performance. Think of it as a way to spot stocks you might be interested in and can add to your watch list and perform further research on and or discuss with your broker.

Again. Not trading advice. Industries and companies change. Trends can end. Do your own research / discuss it with your advisor, but might be one to watch.