Biotech Stock Rally Could Soon Take a Breather

AKRO has been climbing since its November lows

Deputy Editor
Jan 9, 2024 at 3:55 PM
facebook X logo linkedin

The shares of Akero Therapeutics Inc (NASDAQ:AKRO) have been steadily climbing from their November lows following a steep early October bear gap, though pressure seems to have appeared at the $25 level. Plus, if past is precedent, the biotech name could be headed for a short-term dip. 

AKRO's recent rally took it within one standard deviation of its 80-day moving average, a trendline with historically bearish implications. According to Schaeffer's Senior Quantitative Analyst Rocky White, the equity stock has seen five similar signals over the past three years, and was lower one month later in 80% of those instances, averaging a 6.9% loss. 


A round of bear notes could provide headwinds as well. All nine analysts in coverage carry a "strong buy" rating on Akero Therapeutics stock, while the 12-month consensus price target of $42.88 is an 86.8% premium to current levels. 

When weighing in on AKRO's next move, options look like a good way to go. This is per the stock's Schaeffer's Volatility Index (SVI) of 63%, which sits in the low 11th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI