Alexza Pharmaceuticals Nears Daily High; Ready to Breakout

Shares of Alexza Pharmaceuticals

are trading higher on the session by 4.07%, at $1.28. The stock just hit a fresh high of the day, at $1.29, before pulling back slightly. Alexza Pharmaceuticals has been consolidating lower for the past two weeks following a spike higher in later August. ALXA now appears ready to make another run higher for two major reasons: First, shares formed a hammer yesterday and are now trading above yesterday's range. Second, shares are trading just under the 20-day moving average. If Alexza Pharmaceuticals can regain the 20-day, which is pennies above, short covering could take place in a hurry. Note that Alexza Pharmaceuticals has 4.93% short interest. The best way to play this break is to buy shares between $1.25-1.27 and have a sell stop around today's lows. Alexza Pharmaceuticals, Inc. is a pharmaceutical company focused on the research, development, and commercialization of products for the acute treatment of central nervous system conditions.