IDEAYA Biosciences (NASDAQ:IDYA) is currently in Phase 8 of its 18-phase Adhishthana cycle on the weekly charts. Under the lens of the Adhishthana Principles, the stock's outlook appears weak, with signs suggesting it may remain range-bound and underperform until May 2029.
What Went Wrong For IDEAYA Biosciences?
According to the Adhishthana Principles, stocks typically form a Cakra structure between Phases 4-8. This structure often resembles a channel with an arc and generally carries bullish implications. This formation is finally broken to the upside in Phase 9, marking the start of the Himalayan Formation with a strong bullish momentum.
IDEAYA initially followed this path. However, late in Phase 6, the stock deviated sharply when it broke its Cakra to the downside.
Quoting from Adhishthana: The Principles That Govern Wealth, Time & Tragedy:
"When the underlying breaks the Cakra on the flip side, consolidation typically extends into the Guna Triads. The move that follows is highly significant, and selling pressure can be extremely strong. This is called the Move of Pralaya."
IDEAYA triggered this Move of Pralaya, leading to a steep 64% decline. Since then, the stock has remained sluggish, carrying a bearish structural outlook.
The Road Ahead
The prolonged consolidation and sluggish phase is expected to persist until the Guna Triads begin in late May 2029. Until then, the framework suggests limited chances of a meaningful breakout.
Investor Outlook
Having already triggered the Move of Pralaya, IDEAYA's near-term prospects look unfavorable.
- New buyers may want to delay entry, as the stock is unlikely to break out before 2029. While at times the stock may rally, however, those rallies won't be sustainable for the long term.
- Existing holders should reassess exposure, given the extended timeline of underperformance.
Therefore, buying IDEAYA as a value play right now might not be the best IDYA.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
