Shares of Sareum Holdings Plc (LON: SAR) today surged 5.88% despite the company not making any major announcements as buyers took control following 2-day sell-off.
The biotech company’s last announcement was on December 3, when it received a £174,000 grant from UK Research & Innovation (UKRI) to investigate the therapeutic potential of SDC-1801, its selective, small molecule TYK2/JAK1 kinase inhibitor, in treating severe cases of the coronavirus (Covid-19).
Sareum’s shares rallied higher on the news but the rally was followed by a 2-day sell-off, which ended today after the company’s shares rallied higher.
The company’s shares are trading at a major support size, which could explain today’s rally as bulls stepped in and pushed the price higher wresting control away from the bears.
However, today’s rally does not mean that the current downtrend is now over, we need at least a few bullish days before we can say that a new uptrend had begun.
Investors interested in accumulating a position in Sareum may find that the current prices present an excellent opportunity given that the current support zone has been in place since October and is also supported by long-term trends.*
Regardless, Sareum needs a strong positive fundamental trigger that could fuel the next rally, which is yet to happen. The stock had turned lower at the time of publishing underscoring the need for strong fundamental drivers.
*This is not investment advice
Sareum share price
Sareum shares surged 5.88% today to trade at 1.350p having rallied from Monday’s closing price of 1.275p.
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