uniQure (NASDAQ: QURE) has been one of the most eye-catching movers in recent sessions. The stock surged ~250% this Wednesday after reports that the company's gene therapy showed positive results in treating Huntington's disease. While the market cheered the news, the Adhishthana Principles paint a more cautious picture investors should not ignore.

uniQure's Cycle So Far

uniQure has had an eventful journey through its 18-phase Adhishthana cycle on the weekly charts. Now in Phase 17, it's worth revisiting how the stock got here.

Under the Adhishthana Principles, stocks typically form a Cakra between Phases 4 and 8. This channel-like structure with an arc usually carries bullish implications, and a Phase 9 breakout to the upside often sparks the Himalayan Formation, a powerful upward sequence.

uniQure began forming its Cakra in Phase 4 but broke it on the flip side during Phase 8, triggering the Move of Pralaya, a powerful bearish signal.

This mirrors the recent breakdown we highlighted in our commentary on ICF International yesterday.

When a Move of Pralaya occurs, strong selling typically follows, and the stock underperforms until the Guna Triads(Phases 14, 15, and 16). uniQure followed this pattern perfectly, sliding from $60 to $5, and underperforming for more than 1,400 days.

This is the power of the Adhishthana framework, it helps in identifying critical inflection points well in advance.

After that decline, the stock entered the Guna Triads. According to the principles, Phases 14, 15, and 16 collectively form the Guna Triads. These determine whether a stock can achieve its Nirvana in Phase 18, the highest point of the cycle.

For a Nirvana move to occur, the triads must display Satoguna: a clear, sustainable bullish move. uniQure, however, failed to showcase any clean bullish move in the triads. This rules out the possibility of a Nirvana move occurring in Phase 18. 

Current Outlook

The stock is now in Phase 17, a stage where the principles advise against taking new trades. With a weak Guna Triad and no clear bullish setup, this sudden ~250% spike raises more questions than confidence. Even if the rally stretches to the end of Phase 17 in December 2025, Phase 18 for the stock won't have a Nirvana move.

Adding to the caution, uniQure already broke its Cakra, a sign that something fundamental could be off, and has now announced a $200 million underwritten public offering of ordinary shares, which only clouds the picture further.

Investor Outlook

Caution is warranted. While the positive Huntington's disease data is encouraging from a medical perspective, the stock's Adhishthana cycle suggests this rally may not be sustainable in the long term. For now, investors may want to wait for clearer signals before considering any fresh positions.

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.