Viking Therapeutics Stock On Brink Of Death Cross As Weight Loss Hype Loses Momentum

Core Viewpoint - Viking Therapeutics Inc. is approaching a critical technical moment as its stock hovers near a potential death cross, indicating bearish signals and growing pressure on the stock despite previous rallies [1][2]. Stock Performance - VKTX stock experienced a significant decline, dropping 25.69% over the past month and 14.57% over the last six months, currently trading at $54.51, which is below its 20-day and 50-day simple moving averages of $58.72 and $63.04 respectively [2]. - The 200-day simple moving average is at $62.73, indicating a narrow gap that brings the death cross closer [3]. Technical Indicators - The Moving Average Convergence Divergence (MACD) indicator is at a negative 3.68, and the Relative Strength Index (RSI) is at 42.11, suggesting a loss of bullish momentum in the market [3]. Competitive Landscape - Analysts express concerns regarding Viking's ability to compete in the lucrative obesity drug market, which is dominated by major players like Eli Lilly and Novo Nordisk. The production scaling for both oral and injectable versions of Viking's weight-loss drug candidates may be costly and time-consuming, impacting short-term prospects [4]. Outlook - The impending death cross reflects broader challenges for Viking, as investor confidence diminishes amid sector-wide issues. However, there is potential for the stock to recover if Viking announces favorable clinical updates or strategic advancements in its weight-loss pipeline [5].