Vaxart Stock Breaks Out Of Pennant Pattern: Now What?

Vaxart Inc. VXRT shares were trading higher Monday.

A company executive will present an overview of the company’s COVID-19 oral vaccine candidate at the World Vaccine & Immunotherapy Congress on Tuesday, Nov. 30.

The stock looks to be breaking out of resistance Monday. Vaxart was up 0.94% at $7.55 Monday afternoon. 

See Related: Why Vaxart Stock Is About Ready To See A Breakout

Vaxart Daily Chart Analysis

• Shares look to have broken out of what technical traders call a pennant pattern and are looking to test old resistance as support.
• The price has been getting squeezed between narrowing highs and lows for months and now has finally broken above resistance. This break above resistance could let the stock continue to push higher if volume continues to move into the stock.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock looks to be turning bullish..
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) has pushed higher the past few days and now sits at 62 on the indicator. This shows buying pressure is strongly outweighing the selling pressure in the stock.

What’s Next For Vaxart?

Bulls are looking to see the stock begin to form higher lows. If the stock can see an above-average volume day, it may start trending upwards for a time. Bulls are looking to see the stock hold above the moving averages for sentiment to stay bullish.

Bearish traders want to see the stock fall back into the pennant pattern and start to fade lower. If the stock could fall below pattern support, it would be an ideal move for bears, as this hints the stock could start pushing lower in a downward trend after showing it was unable to form higher lows once again.