VKTX Stock: Reiterating My Bullish Stance Biotechnology stocks are a very special breed of stocks. So much hangs in the balance when a new... VKTX Stock Is Up 75.69% Since September 15, With More Gains Likely to Come
vktx stock

VKTX Stock: Reiterating My Bullish Stance

Biotechnology stocks are a very special breed of stocks. So much hangs in the balance when a new drug or treatment seeks approval by the U.S. Food & Drug Administration (FDA) that this group of stocks is well known for their wild swings.

On September 15, I put together a bullish report on Viking Therapeutics Inc (NASDAQ:VKTX) stock outlining why I believed this biotechnology stock was primed for a move toward much higher prices.

The timing of this report could not have been better; on September 18, Viking Therapeutics stock gapped higher, closing the day up 87.3%.

The catalyst that sent this stock price shooting higher was a news release containing positive results for a liver disease drug Viking Therapeutics was working on.


The catalyst and reaction that followed were not the least bit surprising. They served to reaffirm my beliefs that the price action on the VKTX stock chart was alluding to such an outcome. The only real surprise was how soon after my report was published that these events unfolded.

With VKTX Stock Trading Higher, Is It Time to Sell?

Trimming some of the position after such a violent move is never a bad idea, especially since one cannot lose money by taking a profit. On the other hand, I continue to believe that the technical event that transpired on May 29, 2018 continued to suggest that an accelerated move toward much higher stock prices is still in development.

This technical event is highlighted on the following Viking Therapeutics stock chart.

Chart courtesy of

This Viking Therapeutics stock chart illustrates that on May 29, 2018, VKTX stock broke above a level of price resistance that resided at $9.50.

Breaking above this level of price resistance, which was established shortly after this stock first began trading on a public exchange, is the characteristic that made VKTX stock appealing in the first place.

Breaking above a high that was established shortly after inception is known to create mind-numbing moves toward higher prices. Although the current move of 75.67% may seem like a lot in such a short time span, I continue to believe that much higher prices are on the horizon.

The reason why I believe that further gains are on the horizon is because this characteristic is shared among some of the best-performing stocks.

Shopify Inc (NYSE:SHOP) and Facebook, Inc. (NASDAQ:FB) are prime examples. Once they took out their initial highs, their stock prices took off and have not looked back since.

Recently, Tilray Inc (NASDAQ:TLRY) captured the attention of both investors and the media as the stock ran for an astonishing 1,000% return over a five-week period. In case you’re wondering, Tilray also shared this exact same characteristic. Once it broke out, the TLRY stock price exploded.

I chose Tilray as an example for a very good reason. Prior to its accelerated move toward much higher stock prices, it had amassed a short interest position of 19.56%. The reason why I am bringing this up is because Viking Therapeutics stock has now amassed a short interest position of 19.9%, as of September 14.

New highs put pressure on these outstanding short positions, inclining the short seller to cover their position as it becomes increasingly difficult to manage. In order to cover, they need to buy back the stock, which ends up fueling further gains as it pushes the VKTX stock price higher.

Analyst Take

Viking Therapeutics stock is 75.67% higher since I outlined my bullish stance on this stock two weeks ago. Even though these gains are substantial, I continue to believe that much higher VKTX stock prices are likely to follow. which is why I am reiterating my bullish stance on this stock.

MJ Shareholders avatar

MJ Shareholders is the largest dedicated financial network and leading corporate communications firm serving the legal cannabis industry. Our network aims to connect public marijuana companies with these focused cannabis audiences across the US and Canada that are critical for growth: Short and long term cannabis investors Active funding sources Mainstream media Business leaders Cannabis consumers

No comments so far.

Be first to leave comment below.

( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )