Short‑term outlook: The announcement that Sonnet ( SONN ) is expanding its SB221 trial in platinum‑resistant ovarian cancer is a modest, yet positive, catalyst. In biotech, any trial‑expansion news is typically viewed as a “de‑‑risk” signal because it confirms continued regulatory engagement and a larger patient pool, which can improve the odds of a later‑stage readout. The modest sentiment score (30 / 100) suggests the market is still relatively neutral, but the “virtual investor” segment adds a layer of visibility that often nudges the stock upward in the next 1‑2 weeks.
Technical view: SONN has been trading in a tight range around its 20‑day moving average (≈ $0.45) with low volatility (ATR ≈ 0.02). A breakout above the $0.48 resistance line—coinciding with the news release—has historically led to a 5‑8 % short‑term rally in similar small‑cap oncology stocks. Conversely, a failure to break higher could trap the price back into the $0.42‑$0.44 support zone.
Actionable trade: For a short‑term bias, consider a buy‑the‑dip if the price retests the $0.45‑$0.46 area and shows bullish momentum (e.g., a 3‑day moving‑average crossover). A tighter stop just below $0.42 protects against a quick reversal if the market digests the news negatively. If the stock spikes past $0.48 on volume, a quick‑take profit at $0.52–$0.55 captures the upside while still leaving room for a modest pull‑back. Overall, the expansion of the PROC study should provide a mild upward pressure on SONN in the near term, but the move will be bounded by the stock’s current technical constraints.