Novavax Falls Below Support: What Does This Mean For The Vaccine Stock?

Novavax, Inc. NVAX shares are trading lower Monday, slightly falling below a pattern the stock has been trading in. On Thursday, the company said it expanded a license agreement for its NVX-CoV2373 recombinant nanoparticle protein-based COVID-19 vaccine with SK Bioscience Co.

Novavax was down 10.97% at $157.80 at market close Monday.

See Related: How To Buy Novavax Stock

Novavax Daily Chart Analysis

• Shares look to have fallen slightly below the support in what traders call a pennant pattern. If this support line begins to hold as resistance, the stock could be ready for a further bearish push.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates the sentiment is bearish and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling the past few days and now sits at 42. This shows an increase in the number of sellers in the stock and shows sellers have overtaken control of the stock once again.

What’s Next For Novavax?

Traders should take caution as the stock fell out of the pennant pattern. The stock will either recover and continue trading within the pattern or it will hold the pattern support line as an area of resistance. Bulls want to see the stock recover and continue to trade in the pattern and eventually are looking for a break above resistance. Bears are looking to see the stock fall below the support line and begin to hold it as an area of resistance. This may cause a further bearish push in the future.

Photo: Courtesy of Novavax