Madrigal's 15min chart triggers MACD Death Cross and KDJ Death Cross.

According to the 15-minute chart of Madrigal, the MACD indicator has recently crossed below the signal line, indicating a "Death Cross," while the KDJ indicator has also reached a "Death Cross" at the same time. This technical analysis suggests that the stock price may continue to decline, as the momentum of the stock price is shifting towards the downside and has the potential to further decrease.

Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL) has recently experienced a significant upgrade in analyst estimates, with both revenue and earnings per share (EPS) forecasts substantially improved. The consensus statutory numbers for 2025 have been revised to reflect a 69% increase in sales and a 30% reduction in losses per share compared to prior estimates. However, a recent technical analysis suggests that the stock may continue to decline, with the MACD indicator crossing below the signal line and the KDJ indicator reaching a "Death Cross" simultaneously.

The 15-minute chart of Madrigal Pharmaceuticals indicates a "Death Cross" formation, which historically has been a signal of a potential downturn in the stock price. This technical indicator, along with the KDJ indicator reaching a "Death Cross," suggests that the stock's momentum is shifting towards the downside, potentially leading to further price decreases. Despite the positive analyst upgrades, this technical analysis provides a contrasting view, indicating that investors should be cautious.

While the analysts have upgraded their revenue estimates to US$874 million and reduced their loss estimates to US$8.91 per share for 2025, the price target remains unchanged at US$438. This lack of change in the price target despite the significant upgrade in estimates is puzzling and suggests that analysts may not fully reflect the recent positive sentiment in their valuation. However, the company's management has indicated that they are optimistic about Madrigal Pharmaceuticals' prospects and are investing in the stock, which could be a positive sign for investors.

In conclusion, while the analyst upgrades provide a bullish outlook on Madrigal Pharmaceuticals' financial performance, the recent technical analysis suggests a potential downturn in the stock price. Investors should carefully consider both the fundamental and technical aspects before making investment decisions. It is essential to monitor the company's progress and the broader market conditions to make informed investment choices.

References:
[1] https://finance.yahoo.com/news/party-time-brokers-just-made-141608400.html
[2] https://seekingalpha.com/article/4812102-89bio-promising-as-pegozafermin-nears-phase-3-readout