Vir Biotechnology Inc. (NASDAQ: VIR) shows signs of an upcoming price surge according to its latest charts. Vir Biotechnology, Inc. is a clinical-stage immunology company that develops therapeutic products to treat and prevent serious infectious diseases
#1 Channel Breakout: The daily chart shows that the stock has been trading within a downtrend channel for the past few months. This channel is marked in the daily chart in pink color. Currently, the stock has broken out of this channel, indicating that it has the potential to surge ahead.
#2 MACD above Signal Line: As you can see from the daily chart, the MACD line (blue color) is currently above the signal line (orange color). This indicates a possible bullish bias.
#3 Above MAs: The stock is currently trading above its short-term moving average of 50-day SMA as well as the longer-term moving average of 200-day SMA, indicating the overall bullishness of the stock.
#4 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the daily chart. This indicates possible bullishness.
#5 Bullish ADX: The daily chart shows that the ADX line has moved up from below –DI and +DI lines. The +DI line and the ADX lines are also currently above –DI line. All these indicate possible bullishness.
#6 Broken Downtrend: The weekly chart shows that the stock has broken out of a downtrend, which is marked as a purple color line. The stock is also trading above its 50-week SMA. All these are possible bullish signs.
#7 Bullish Stochastic: The %K (blue) line of stochastic is currently above the %D (Orange) line in the weekly chart. It has also moved higher from oversold levels. This is a possible bullish indication.
#8 Bullish MACD: In the weekly chart, the MACD line (blue color) has currently crossed above the signal line (orange color). This indicates a possible bullish bias.
#9 Bullish ADX and DI: The ADX indicator shows bullishness because the +DI line is above the -DI line and the ADX line is currently starting to move higher from below the +DI and -DI lines.
Recommended Trade (based on the charts)
Buy Price: If you want to get in on this trade, you can purchase the shares of VIR if it opens and trades above the price of around $54.00.
TP: Our target prices are $58 and $62 in the next 3-6 months.
SL: To limit risk, place a stop loss at $51.50. Note that this stop loss is on a closing basis.
Our target potential upside is almost 7% to 15% in the next 3-6 months.
For a risk of $2.50, our target rewards are $4.00 and $8.00. This is almost 1:2 and 1:3 risk-reward trade.
In other words, this trade offers 2x to 3x rewards when compared to risks.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the channel breakout level. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
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