Biotech stock Verona Pharma (VRNA) is setting up really well in a large base with the 50-day moving average just below. VRNA is a stock I've been watching for quite some time now. I owned it earlier this year but was stopped out as the market corrected. Biotech stocks are currently one of the top ranked groups, and we've seen impressive actions in stocks like AKRO and ETNB which is a good sign that a theme may be developing.
Big bases offer large potential as they weed out weak hands. Often, these bases form during market corrections or bear markets as the general conditions hold back the majority of stocks. It does indeed look like the market environment is improving, and that makes me take an even closer look at stocks that are setting up well. Something that caught my attention was how VRNA exploded higher in December 2022 and has moved in a mostly constructive manner throughout 2023. I'll be on the lookout for a potential buy in the coming days.
Risk right. Sit tight.
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