The VAl share price popped in London as investors remained optimistic about the company’s pipeline. The Valirx shares also rose after the company reported a relatively narrower loss.
ValiRx reports narrower loss
ValiRx is a small UK company that operates in the biosciences industry. The company, which is yet to make a profit, is researching on several cancer treatments that it hopes will help address a key market. The company has a market capitalisation of more than £14.96 million and its stock is thinly traded in London.
The VAL share price jumped by more than 4% on Wednesday after the company reported a relatively narrower loss than expected. The company made a pretax loss of more than £785k in the first six months of the year. This was lesser than the £884k loss that it made in the same period a year before. This happened after the company lowered its administration costs while increasing its R&D expenses.
So, is the ValiRx share price a buy or sell?
VAL share price forecast
The daily chart shows that the ValiRx share price soared to an all-time high of 73.25p in October last year. Since then, the stock has been in an overall tight range whose support and resistance was at 17.35p and 26.85p.
Therefore, despite the jump on Wednesday, the stock is still inside this range, thus, it cannot be considered a bullish break-out.
As such, the outlook of the stock is still neutral until the stock moves above the resistance or below the support level. Still, investors should be warned that such small-cap biosciences stocks are usually high-risk, high-reward investments.