Verona Pharma Plc (VRNA) was selected as the Top Pick of the Week (TPOW) on Monday, May 12, 2025, based on strong technical indicators, including a StockCharts Technical Rank (SCTR) well above 90, high trading volume, and a confirmed breakout above the Green Zone. Trade summary is given below.
Date Purchased: May 12, 2025 (Monday Open)
Entry Price: $61.62
Sell Date: May 12, 2025 (Same Day)
Exit Price: $66.55
Gain: +8.0%
📈 Why VRNA Was Picked
VRNA exhibited a compelling technical setup entering the week of May 12. The stock had:
- Broken out of a consolidation pattern on strong volume
- Maintained a SCTR ranking above 90, signaling institutional interest and relative strength
- Traded well above its Green Line (250-day moving average), indicating clear upward momentumWikipedia
These factors made VRNA a high-probability swing candidate under our TPOW criteria.
⏳ Rapid Exit Based on TPOW Rules
While the TPOW strategy typically involves buying on Monday and selling on Friday of the same week to capture short-term momentum, VRNA reached our predefined 8% profit target on the same day. Per TPOW rules, we closed the position immediately to lock in gains.
💰 Capitalizing on Market Momentum
The broader market also experienced strong performance during the week ending May 16, 2025. The S&P 500 rose 5.3%, the Dow Jones Industrial Average gained 3.4%, and the Nasdaq Composite surged 7.2% . This rally was driven by easing U.S.-China trade tensions, positive earnings reports, and renewed optimism in the technology sector.Kiplinger+5MarketWatch+5Investor’s Business Daily+5Investor’s Business Daily
Our timely exit from VRNA allowed us to capture a significant gain while adhering to our disciplined trading strategy.
🔍 Final Thoughts
The VRNA trade exemplifies the importance of following a rules-based system. By setting clear profit targets and adhering to them, we can consistently capture gains and manage risk effectively. As we look ahead, we will continue to identify high-probability setups that align with our TPOW criteria.
Stay tuned and stay disciplined.
