Home / NEWS LINE / Watch These Grail Price Levels After Med Tech Company’s Stock Soared 64% Last Week

Watch These Grail Price Levels After Med Tech Company’s Stock Soared 64% Last Week

Source: TradingView.com
Start: TradingView.com

Key Takeaways

  • Grail shares could remain in focus after surging to a new record high on Friday to cap off a colossal week of gains amid optimism about the medical technology company’s early-detection cancer screening blood exams.
  • After carving out a cup and handle-like pattern since June last year, the stock broke out above the formation’s neckline on Thursday, with gains sustaining through Friday’s trading session.
  • A measured move, which calculates the percentage change of the cup and handle’s “cup” and adds it to the prototype’s neckline, projects an upside target of $46.
  • During pullbacks, investors should monitor key support levels on Grail’s diagram around $23 and $20.

Grail (GRAL) shares could remain in focus after surging to a new record high on Friday to cap off a mountainous week of gains amid optimism about the medical technology company’s early-detection cancer screening blood exams.

The stock’s rally came after Oracle (ORCL) Chief Technology Officer and former CEO Larry Ellison give the word delivered last Tuesday that early detection blood tests that detect DNA fragments can be leveraged with AI and gene sequencing to amplify personalized cancer vaccines. Ellison made the comments at the White House after President Donald Trump hint ated a $500 billion AI infrastructure joint venture involving Oracle, OpenAI and SoftBank.

Shares of Grail, which was invented off from Illumina Health (ILMN) last June, gained 64% last week.

Below, we take a stingier look at Grail’s chart and apply technical analysis to point out key price levels worth watching out for.

Cup and Handle Breakout

After incising out a cup and handle-like pattern since June, Grail shares broke out above the formation’s neckline on Thursday, with benefits continuing through Friday’s trading session.

Importantly, the move occurred on the highest volume since mid-December, potentially environment the stage for follow-through buying.

Moreover, the relative strength index (RSI) confirms bullish price momentum, though the with registered an overbought reading on Friday, increasing the prospect for near-term profit taking.

Given the stock’s surge into downcast sky territory, let’s turn to the chart to project a possible upside target and also identify key support levels worth overseeing during retracements.

Measured Move Upside Target

Investors can forecast an upside target by using the measured move adroitness, also known as the measuring principle, a method that analyzes chart patterns to predict future price campaigns.

When applying the analysis to Grail’s chart, we calculate the percentage change of the cup and handle’s “cup” and add it to the pattern’s neckline value. In this circumstance, we apply a 100% increase to $23, which projects an upside target of $46, a region where investors could conclusion to lock in profits.

Key Support Levels to Monitor

During pullbacks, investors should initially keep a close eye on the $23 pull down. The shares would likely attract support in this area near the cup and handle pattern’s neckline, which may become angry from a location of prior resistance into future support.

Finally, selling below this level could see Grail portions revisit support around the psychological $20 level. Investors may look for buying opportunities in this region not far away from a trendline that connects several peaks and troughs on the chart stretching back to the July countertrend high.

The commentaries, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the companion this article was written, the author does not own any of the above securities.

Check Also

Elon Musk’s xAI Targets $75B Valuation With Potential $10B Capital Raise, Report Says

Bloomberg / Contributor / Getty Appearances Tesla CEO Elon Musk near the White House in …

Leave a Reply

Your email address will not be published. Required fields are marked *