Why Vaxart's Stock Price Is Being Compressed In A Pennant Pattern And Looks Ready To Break Soon

Vaxart Inc. VXRT shares pushed higher Monday after the company made an announcement stating the U.S. Food and Drug Administration cleared its Investigational New Drug application for an S-only oral tablet SARS-CoV-2 vaccine candidate.

Vaxart was up 11.13% at $7.99 at last check Monday.

See Also: Why Vaxart's Stock Is Trading Higher Today

Vaxart Daily Chart Analysis

• Shares look to be trading in what technical traders would call a pennant pattern and could see a breakout within the coming weeks.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock is likely turning bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The price is being compressed between narrowing highs and lows, and will continue until it possibly sees a high volume move pushing it out of the pattern.
• The Relative Strength Index (RSI) has not seen any large movements in the past few months. If the stock breaks out, the RSI may see a large move.

What’s Next For Vaxart?

Bullish traders would like to see the stock continue to trade in the pennant pattern and then break out above pattern resistance. Bulls would then like to see a large upwards move and consolidation where the stock can hold its gains.

Bears would like to see the stock move lower and fall below the pattern support line. A break below pattern support may cause the stock to see a further bearish push.

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