Why Did Novavax Stock Get Slammed Today?

Novavax, Inc. NVAX shares tumbled lower Wednesday after retail traders were able to push the stock lower.

Vaccine stocks were very volatile today, and many are trading lower amid possible profit-taking as there are COVID-19 delta variant concerns.

The stock was trending throughout the day on social media sites such as StockTwits.

Novavax was down 13.67% at $185.78 at last check Wednesday.

Novavax Daily Chart Analysis

• Shares were falling the past few months, but now look to have almost broken out of what technical traders call a falling wedge pattern.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average, indicating sentiment in the stock has been bullish.
• These moving averages may both hold as an area of support in the future.

Key Novavax Levels To Watch

• The stock looks like it was about to break out of the falling wedge pattern before tumbling Wednesday and falling back into the pattern.
• The stock may still break out of the pattern, but it would need to find support and make a bounce back up.
• The Relative Strength Index (RSI) started cooling off Wednesday and crossed below the middle line. The RSI sits at 48, indicating there are slightly more sellers in the stock than buyers.

What’s Next For Novavax?

Bullish traders would like to see the stock bounce back up and break out of the falling wedge pattern. Bulls would then like to see the stock consolidate while holding its gains for a potential further upward push.

Bearish traders would like to see the stock fall below the pattern support. Bears also want to see the stock drop below the moving averages for a potential change in trend.