Alzamend Neuro (ALZN) share price ran 55.8% last Thursday. The stock saw unusual volume of nearly 60M, way above the average volume of 3.2M. The stock moved from an open price of $2.29 to a high of $3.57, before closing the day at $3.08. ALZN looks ready for a strong move.
Alzamend Neuro, Inc.
ALZN “is a Delaware corporation with its corporate headquarters in Tampa, Florida with nexus in California. The mission of Alzamend Neuro is to help the Alzheimer’s community by supporting the full product development life cycle of treatment and cures for Alzheimer’s Disease driven by the belief that strong support of research is the foundation for true innovation.”
The company is working on transitioning two therapeutics. Their lead product, AL001, is a patented ionic co-crystal technology for the treatment of Alzheimer’s and other neurodegenerative diseases and psychiatric disorders. Their second product, AL002, is a patented method using a mutant peptide sensitised cell as a cell-based therapeutic vaccine which seeks to restore the ability of the patient’s immunological system to combat Alzheimer’s.
What caused the move?
The FDA sent a letter to Alzamend Neuro detailing the path it needs to take for a Type B Pre‑Investigational New Drug (IND) of AL002. The company says this should allow it to submit the IND in November 2021 and begin its clinical trial in the first quarter of 2022.
High volume on a trading day that saw a large increase is a very bullish signal. This means the move up in price is supported by the demand of buyers. If a stock takes an unusually large move up on usual volume, concerns may arise for traders. After the news, the Alzamend Neuro share price broke through resistance of $2.70, and has since held that price as support. The hourly chart is forming a cup. A cup and handle set up is a popular pattern for traders.
I believe the stock will break above $3.57, the high it saw on Thursday. The price will test $4.30 after the recent high is broken. The stock has fallen a long way in recent months. This news and momentum could be the reversal for it. If further trials go well for Alzamend Neuro, we could see prices close this year above $7.