Clinical-Stage Neuroscience Firm Is Breaking New High as Price Action Calls for Buys

Biotech

Headlines on Sunday indicated that the negotiations between the US and Iran were a failure, but on Monday morning, that view is shifting.

There are reports that discussions are advancing, and the New York Post is reporting that Iranian officials, including advisors to Iran's new Supreme Leader, Mojtaba Khamenei, are "studying" the abandonment of enrichment of uranium as the primary path to saving the regime from total collapse.

There were also reports that Iran never ruled out abandoning enrichment during the meeting on Sunday, but that communication difficulties prevented them from discussing the issue with leaders in Tehran.

Investors like what they are hearing, and the indices have recovered most of their early losses. Breadth is still under 40% positive but improving nicely. Small caps — as demonstrated by iShares Russell 2000 ETF (IWM) — are leading, and the Magnificent Seven — as demonstrated by the Roundhill Magnificent Seven ETF (MAGS) — are also doing well.

What is most impressive about this market is the positive price action and many good-looking charts. The bears can make all the macro and fundamental arguments they like, but price action tells us that the market doesn't care.

Investors are trying to put more money to work because they sense a positive resolution to the Iran situation sooner or later.

Alto Neuroscience (ANRO)

An example of a good chart on my radar is Alto Neuroscience (ANRO) . I have discussed this name several times, and it is breaking a new closing high on Monday morning.

Alto Neuroscience is a clinical-stage biopharmaceutical company that uses an AI-enabled biomarker platform to develop precision medicines for neuropsychiatric disorders, including depression, treatment-resistant depression and schizophrenia.

In late 2024, ANRO crashed after its schizophrenia candidate failed to meet its primary endpoint. Shares broke down again ahead of the tariff-tantrum last year but clawed back those losses before jumping sharply higher on October 3, 2025, when the FDA granted Fast Track designation to ALTO-101 for the treatment of cognitive impairment associated with schizophrenia, an indication with no currently approved treatments.

On October 20, shares jumped again when the company announced a successful outcome from an FDA meeting for ALTO-207, a fixed-dose combination therapy for treatment-resistant depression, and closed a $120 million PIPE to accelerate its development toward a potentially pivotal Phase 2b trial.

Technically, shares spent the next couple of months digesting those October gains with support along the 20-day moving average before pushing toward post-IPO highs from 2024. The stock spent the next couple of months basing at highs before inching into record-high territory in mid-March. Since then, ANRO has been forming a pennant with support along the 50-day moving average, showing notable relative strength in an otherwise challenging market.

Game Plan

There are several other biotechnology names on my radar with attractive charts, including BridgeBio Pharma (BBIO) , Cullinan Therapeutics (CGEM) , Delcath Systems (DCTH) , Definium Therapeutics (DFTX), Vir Biotechnology (VIR) and TG Therapeutics (TGTX) .

There are only about 90 stocks hitting new highs on Monday, but many of them are in biotechnology and the optical sector. It actually looks like a roaring bull market in quite a few names if you are in the right sectors.

My best advice right now is to avoid being distracted by the news flow about Iran. Focus on the charts and follow the price action. The bears will give you plenty of reasons to be cautious but the price action suggests it is a good idea to make some buys.

At the time of publication, DePorre was long ANRO, BBIO, CGEM, DCTH, DFTX, VIR and TGTX.