Why Novavax Looks Like It Could Be Breaking Out

Novavax, Inc. NVAX shares rallied higher Wednesday after the company announced it finalized an advanced purchase agreement with the European Commission for the purchase of up to 200 million doses of its COVID-19 vaccine.

Novavax was up 20.50% at $227.73 at last check Wednesday.

Novavax Daily Chart Analysis

• Shares look to be trading in what technical traders would call a pennant pattern and could see a breakout in the next couple of 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 nearing resistance and is looking as though it is ready to break out. If the price continues to push the stock may see a breakout.
• The Relative Strength Index (RSI) pushed higher and now sits at 61. This means there are more buyers than sellers in the stock.

What’s Next For Novavax?

Bullish traders would like to see the stock either break out of resistance this time or continue to trade within the pattern for a little longer before seeing a breakout. Bulls eventually will want to see the stock breakout and move higher.

Bears would like to see the stock get rejected at pattern resistance and fall back lower. Bears would then like to see the stock fall below pattern support. Consolidation below pattern support and the stock may see a further bearish push.

Photo: Courtesy of Novavax

See also: HOW TO BUY NOVAVAX (NVAX) STOCK