• Burning Rock Biotech (BNR), a precision oncology company from China, has shown exceptional technical momentum and price appreciation.
• BNR has surged 405% over the past year, hitting a 2-year high on Wednesday.
• Despite strong technicals, BNR is a highly speculative and risky stock.
• Today’s Chart of the Day is not a buy recommendation. Investors should exercise caution, diversify, and use strict stop-loss strategies with BNR.

Today’s Featured Stock

Valued at $209 million, Burning Rock Biotech (BNR) focuses on the application of next-generation sequencing technology in the field of precision oncology. Its business consists of NGS-based therapy selection testing for late-stage cancer patients as well as NGS-based cancer early detection. Burning Rock Biotech is based in Guangzhou, China. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. BNR checks those boxes. Since the Trend Seeker signaled a new “Buy” on Oct. 22, the stock has gained 107.05%.

Barchart Technical Indicators for Burning Rock Biotech

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Burning Rock hit a new 2-year high of $23.45 in morning trading on Nov. 26.

• BNR has a Weighted Alpha of +82.77.
• Burning Rock has a 100% “Buy” opinion from Barchart.
• The stock gained 405.9% over the past year.
• BNR has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $21.58 with a 50-day moving average of $11.20.
• Burning Rock has made 7 new highs and gained 64.3% in the last month.
• Relative Strength Index (RSI) is at 75.84.
• There’s a technical support level around $17.67.

Don’t Forget the Fundamentals

• $209 million market capitalization.

Analyst and Investor Sentiment on Burning Rock Biotech

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street and individual investors have not discovered this stock yet.

• 1,090 investors monitor the stock on Seeking Alpha, which does not rate the stock.

The Bottom Line on Burning Rock Biotech

This is a highly speculative Chinese Biotech issue. It is not followed by Wall Street and should be considered very risky.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

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