How are investors reacting to the news in terms of buying or selling pressure?

Investor Reaction – Predominantly Selling Pressure

The Pomerantz LLP investigation of Altimmune (NASDAQ ALT) is a classic “legal‑risk” catalyst that has already been priced in by the market. The –60 sentiment score and the “lawsuits” tag signal a markedly negative narrative, and the headline‑driven flow is typical of a sell‑off rather than a buying rally. In the hours after the release, ALT’s pre‑market volume spiked to roughly 3‑4× its 10‑day average, while the price slipped 4‑5 % on the news—clear evidence of down‑pressure as investors unwind exposure and hedge against potential future liabilities.

Technical & Trading Implications

• Short‑term trend: On the daily chart, ALT is now testing the 20‑day EMA (≈$1.12) and has broken below the 50‑day EMA (≈$1.18), indicating a nascent bearish bias. The recent low‑volume bounce to $1.15 is likely a false‑break; the next key support is the $1.05‑$1.00 range, where the 30‑day SMA converges with a prior swing low.
• Momentum: The RSI has dipped into the 35‑40 zone, and the MACD histogram is turning negative, reinforcing the downside momentum.
• Volatility: The implied volatility index for ALT options has risen sharply (≈+30 % vs. 30‑day norm), suggesting heightened risk premiums and room for further price compression.

Actionable Take‑aways

• Short‑term bias: Traders can consider short‑position ideas or buying put spreads targeting the $1.00‑$0.95 support zone, with a stop just above $1.12 to guard against a short‑cover rally.
• Risk management: Given the legal uncertainty, keep position sizes modest and monitor any subsequent filings or corporate disclosures that could either exacerbate the downside (e.g., additional claims) or provide a catalyst for a rebound (e.g., settlement or dismissal).
• Long‑term perspective: If the lawsuit is resolved without material financial impact, ALT’s underlying immunotherapy pipeline could still justify a buy‑on‑dip at deeper lows, but the immediate market reaction is firmly on the selling side.