Why Novavax Looks Like It's Breaking Out Of A Pattern

Novavax Inc. NVAX shares are rallying 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 is up 11.72% at $259.20 at publication time.

Novavax Daily Chart Analysis

• Shares look to be nearing resistance in what technical traders call an ascending triangle pattern.
• The stock has found resistance near the $260 in the past, and the stock looks to be nearing this area once again. The higher low trendline is an area where the stock has found support in the past and this line may continue to hold as support in the future.
• 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 Relative Strength Index (RSI) saw a push higher Thursday and moved up to 59. This shows there was an increase in the amount of buying pressure in the stock.

What’s Next For Novavax?

Bullish traders are looking to see the stock break out of the pattern and make a bullish move higher. Bulls then want to see the stock be able to hold above the $260 level while consolidating. If the stock can consolidate above resistance, it may be ready for a further upward move.

Bears are looking to see the stock get rejected at the $260 resistance level and start to fall back down. Bears want to see the stock fall below the higher low trendline. A drop below the higher low trendline could indicate the stock is about to change trends.