Core Viewpoint - XOMA Royalty (XOMA) has experienced a recent decline in share price, but the formation of a hammer chart pattern suggests a potential trend reversal due to increased buying interest and positive earnings outlook from analysts [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, where the stock opens lower, makes a new low, but then closes near its opening price, suggesting that selling pressure may be exhausting [4][5]. - This pattern is significant as it occurs during a downtrend, signaling that bears may be losing control and bulls are gaining strength [5]. Fundamental Analysis - There has been a notable upward trend in earnings estimate revisions for XOMA, which is a bullish indicator suggesting potential price appreciation [7]. - The consensus EPS estimate for the current year has increased by 3671.4% over the last 30 days, indicating strong agreement among analysts regarding improved earnings potential [8]. - XOMA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10].