Meme inventory Cassava Sciences Inc. (NASDAQ:SAVA) shares surged greater than 27% on Wednesday after revealing plans to current knowledge on its Alzheimer’s drug, Simufilam, on twenty ninth July.
Cassava will learn out its interim evaluation on a 9-month remedy with Simulflam on the 2021 Alzheimer’s Affiliation Worldwide Convention (AAIC) in Denver. It should cowl security and cognition knowledge from the primary 50 sufferers with Alzheimer’s to finish the open-label remedy.
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Cassava mentioned the presentation would additionally embody knowledge from 25 sufferers who accomplished the 6-month cerebrospinal fluid (CSF) remedy.
Must you purchase or promote Cassava shares now?
Cassava Sciences’ inventory value spiked greater than 1,500% this yr after the FDA authorised Biogen Inc.’s (NASDAQ:BIIB) Alzheimer’s drug Aduhelm. Nonetheless, these days, Alzheimer’s drug builders have come underneath stress after the US meals and drug administration watchdog launched an investigation into Aduhelm amid questions concerning the approval course of.
The SAVA inventory value pulled again about 25% earlier this month earlier than gaining practically 43% this week. This week’s rebound seems to be pushed by excessive expectations on the upcoming knowledge readout.
SAVA shares seem to reply to market sentiment forward or after a significant occasion concerning the Alzheimer’s drug market. Nonetheless, there may be nothing concrete to guess on till Simufilam reaches the ultimate phases of the approval course of. As such, given Wednesday’s sharp spike, it could possibly be greatest to take earnings now earlier than a pullback.
Technical overview: Cassava Sciences’ inventory value predictions for Q3 2021
Technically, Cassava Sciences shares seem to have just lately popped nearer to overbought situations within the 14-day RSI. Wednesday’s spike pushed SAVA shares to new all-time highs of about $121 earlier than pulling again late on to $115.48.
Buyers can goal prolonged pullbacks at roughly $108.28 or decrease at $101.09. The important thing resistance ranges are $121.20 and $128.03.
Backside line: the case for promoting SAVA shares now
Though Wednesday’s spike will doubtless appeal to extra traders to SAVA, the corporate is way from turning earnings. As well as, analysts count on Cassava sciences loss to ballon 1000% subsequent yr. Subsequently, Wednesday’s rebound is a chance to take earnings or provoke a brief place for merchants.
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