On Wednesday, Madrigal Pharmaceuticals cleared a key technical benchmark, seeing its Relative Strength (RS) Rating jump into the 90-plus percentile with an improvement to 91, up from 88 the day before.
IBD's unique RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the trailing 52 weeks matches up against other publicly traded companies.
Decades of market research shows that the stocks that go on to make the biggest gains often have an RS Rating of at least 80 at the beginning of a new run.
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Madrigal Pharmaceuticals is building a consolidation with a 368.29 entry. See if it can break out in volume at least 40% above average. Be aware that it's a third-stage base. Later-stage patterns can work, but have a greater chance of failing since, by that point, the stock has already climbed substantially..
The company posted 0% EPS growth last quarter, while sales growth came in at 0%.
The company holds the No. 132 rank among its peers in the Medical-Biomed/Biotech industry group. Catalyst Pharmaceuticals, Exelixis and Halozyme Therapeutics are among the top 5 highly rated stocks within the group.
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