Druckenmiller's Viking Trade Just Hit A Golden Cross — And A Sweet 36% Gain

Core Insights - Stanley Druckenmiller's investment in Viking Therapeutics Inc (VKTX) has proven to be a timely and strategic move, with the stock rising nearly 36% since his entry [1][2][3] - The stock's recent performance is attributed to both technical indicators and positive sentiment surrounding its weight-loss drug pipeline, which is compared to larger competitors in the GLP-1 market [2][6] Investment Details - Druckenmiller's family office acquired approximately 549,000 shares at an average price of $25.33 during the second quarter, resulting in a current position valued at around $14.5 million as the stock trades at $34.63 [1][3] - The investment represents a modest 0.37% allocation in the portfolio, but has gained significant value as the stock rebounded from a slump earlier in 2024 [2][6] Technical Analysis - The stock has formed a Golden Cross pattern, with the 50-day moving average crossing above the 200-day moving average, indicating a potential new uptrend [3][4] - Momentum indicators such as MACD at 1.58 and RSI at 54.18 suggest a healthy strength in the stock, while short-term averages remain above long-term levels, confirming trend alignment [4][5] Market Context - Viking Therapeutics is positioned as a smaller player in the biotech sector, particularly in the weight-loss drug market, which is gaining attention and could lead to significant growth opportunities [2][6] - The timing of Druckenmiller's investment aligns with a broader trend of macro inflection points, showcasing his ability to identify promising opportunities in the market [5][6]