Alnylam Pharmaceuticals (ALNY) has given back roughly 13% over the past couple of weeks, and if you're wondering why the pullback is happening now, the answer might lie in technical patterns that have been quietly setting up for months.

Decoding the Weekly Structure

Looking at the weekly charts, Alnylam is currently navigating Phase 11 of an 18-phase Adhishthana cycle. Back in July, when the stock was still in Phase 10, analysts published cautious commentary questioning whether the biotech was topping out. The recent price action suggests that call was pretty much on target.

Here's how the framework works: stocks typically form what's called a Cakra structure between Phases 4 and 8, an arc-like consolidation that sets the stage for a breakout in Phase 9. That breakout kicks off something called the Himalayan Formation, which consists of three distinct movements: an ascent, a peak, and a descent.

Alnylam broke out of its Cakra pattern in June, launching the ascent leg of this formation. The timing coincided with positive news around Vutrisiran, the company's drug for transthyretin amyloid cardiomyopathy, which gave bullish sentiment a nice boost. The stock powered through Phase 9 and Phase 10 with solid momentum.

While Phase 10 often presents an opportunity for peak formation, the earlier analysis suggested Alnylam was more likely to top out in Phase 11. That's exactly what happened. Shortly after entering Phase 11, the stock hit a high near $495.55 and promptly shifted into correction mode. From that peak, shares have already dropped over 20%, signaling the start of the descent leg.

What Investors Should Watch

With the descent leg now underway, the stock will likely face continued pressure in the near term. This isn't the phase of the cycle where you want to be aggressively adding to positions. For investors already holding Alnylam, hedging might be worth considering. The technical structure suggests the stock could revisit its Phase 9 levels before the descent phase fully runs its course.

In other words, if you're thinking about catching this falling knife, you might want to wait until there's clearer evidence the descent has exhausted itself. Patience tends to pay off better than trying to time the exact bottom during a structured correction like this one.