Madrigal's 15-min chart shows Bollinger Bands expanding upward with bullish marubozu.

Madrigal's 15-minute chart has exhibited an expansion of Bollinger Bands upward, coupled with a bullish Marubozu at 08/20/2025 11:15. This suggests that the market trend is being predominantly driven by buyers, indicating a strong level of control by the buying side. Consequently, bullish momentum is likely to persist.

Madrigal Pharmaceuticals (MDGL) has seen its stock price rise by 1.1% to $365.90 following the U.S. FDA's accelerated approval of Novo Nordisk's (NOVO_B) weight-loss drug, Wegovy, for treating metabolic dysfunction-associated steatohepatitis (MASH) [1]. This approval marks a significant milestone in the treatment of MASH, a serious liver condition.

The FDA's decision has bolstered investor confidence in Madrigal's stock, with brokerage Piper Sandler maintaining an "overweight" rating and a price target (PT) of $400, representing a 9.61% upside to the last close [1]. The brokerage notes that Wegovy's approval should expand the MASH market, where Madrigal's drug, Rezdiffra, is optimized for success. Rezdiffra, which was approved in 2024, has no contraindications and is seen as a safe and effective treatment option.

Madrigal's 15-minute chart has also exhibited a notable bullish trend, with Bollinger Bands expanding upward and a bullish Marubozu pattern observed on August 20, 2025, at 11:15 [2]. This suggests that market momentum is being driven by strong buying activity, with buyers exerting control over the market and indicating a continuation of the bullish trend. The expansion of Bollinger Bands signifies increased volatility and potential price movements, while the bullish Marubozu pattern signals strong buying pressure and a potential trend continuation.

Fifteen of 17 brokerages rate Madrigal's stock as a "buy" or higher, with a median price target of $445.63 [1]. The stock has been up 18.3% year-to-date (YTD), reflecting the positive sentiment surrounding the company's products and market position.

In addition to the FDA approval, Madrigal has received European Commission (EC) approval for Rezdiffra in the treatment of adults with noncirrhotic MASH with moderate to advanced liver fibrosis [3]. This approval makes Rezdiffra the first and only approved therapy in the European Union (EU) for the treatment of MASH. The EC's decision was based on the positive results from the pivotal Phase 3 MAESTRO-NASH trial, which demonstrated Rezdiffra's ability to reduce fibrosis, resolve MASH, and improve key noninvasive tests.

Madrigal's strong performance and positive market trends suggest that the company is well-positioned to capitalize on the growing demand for effective treatments in the MASH market. Investors should closely monitor the company's stock for further price movements and other technical indicators to confirm the continuation of the bullish trend.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UA0UI:0-madrigal-pharma-down-novo-s-wegovy-gets-fda-approval-for-liver-disease/
[2] https://www.ainvest.com/news/phathom-15min-chart-shows-bollinger-bands-expanding-upward-bullish-marubozu-formation-2508/
[3] https://www.biospace.com/press-releases/madrigal-receives-european-commission-approval-for-rezdiffra-resmetirom-for-the-treatment-of-mash-with-moderate-to-advanced-liver-fibrosis