Altimmune's Stock Trades In A Double Bottom Pattern: What's Next?

Altimmune Inc. ALT shares traded higher after the company announced data from its ALT-801 Phase 1 Trial in overweight and obese volunteers. The company announced that weight loss of 5.4% was achieved at six weeks with a weekly dose of 1.8mg.

Altimmune's stock was up 16% at $16.43 at last check. Below is a technical look at the stock.

Altimmune Daily Chart Analysis:

• Shares are trading in what technical traders could call a double bottom pattern, and have since been moving higher.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Levels To Watch:

• Shares confirmed the double bottom pattern Wednesday. In each bottom, the stock found support near the $11.50 level.
• The double bottom pattern happens when the stock falls to the same area twice and both times is able to bounce forming what looks like a “W” on the chart.
• The Relative Strength Index (RSI) shows that the stock has started to enter the area above 70. This signals the stock is overbought and has many more buyers than it does sellers. If the stock continues to stay in the overbought range, it may continue to run higher throughout the week.

What’s Next?

Bullish technical traders would like to see the stock continue to rise and stay overbought. Bulls would like to see the stock consolidate and hold some of the gains it made when it finishes making the run it is on.

Bearish technical traders would like to see the stock fall below the area where the double bottom happened. If the price is able to cross below the $11.50 area, then it may follow with a strong downward push.