Novavax Stock Pushes Higher In A Pattern: Technical Analysis

Novavax Inc. NVAX shares were trading higher Friday after the World Health Organization issued emergency use listing for its NVX-CoV2373 COVID-19 vaccine. The stock is trading higher and saw a push toward a resistance level in the pattern in which it trades. 

Novavax was up 9.46% at $213.35 midday Friday. 

See Also: Why Novavax Shares Are Rising

Novavax Daily Chart Analysis

• Shares are making a jump higher in what traders call a pennant pattern. The stock saw a gap up and is pushing toward resistance. The stock was also able to climb above the 200-day moving average once again, a bullish sign.
• The stock trades above both the 50-day moving average (green) and crossed above 200-day moving average (blue) Friday. This indicates the sentiment is turning bullish, and each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) saw a jump higher today and now sits at 59 on the indicator. This shows that many buyers moved into the stock and there is significantly more buying pressure than selling pressure.

What’s Next For Novavax?

Novavax is trading in the pennant pattern and will likely continue to have its price condensed between narrowing highs and lows until the stock sees a breakout.

A breakout will occur when the stock pushes past pattern resistance or support on an above average volume day and then makes a strong push past the key level. Bulls are looking for a break above the pattern resistance, while bears want to see the stock fall below the moving averages and pattern support.