Vaxart Stock Is Being Squeezed At The End Of A Pattern

Vaxart Inc. VXRT shares are trading higher Thursday after bouncing off support. There looks to be no company evident news to explain the jump in price. The stock was trending on social media sites such as StockTwits.

Vaxart was up 3.4% at $6.98 at press time.

Vaxart Daily Chart Analysis

• Shares look to have bounced off support and are heading back toward resistance in what technical traders call a pennant pattern.
• The price has been getting condensed between narrowing highs and lows and now is nearing the end of the pattern. The pattern may finish sometime next month, and a break below support or above resistance could cause the stock to continue pushing in that direction.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock looks to be turning bearish..
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) has been building higher lows and slowly pushing higher for the past month and a half and now sits at 53. This shows that there is now more buying pressure than selling pressure in the market.

What’s Next For Vaxart?

Bullish traders want to see the stock continue to push in the pattern and go on to break above resistance. A cross above the pattern resistance line could cause the stock to see a breakout and a strong bullish push higher.

Bearish traders want to see the stock to stay below the moving averages and fall below the pattern support line. Falling below support could mean the stock is ready to see a further bearish push and a possible change in trend.