Technical Levels To Watch In Novavax Stock As It Looks To Bounce Back

Novavax Inc. NVAX shares are trading higher Monday after the company completed its rolling submission to Health Canada for the authorization of its protein-based COVID-19 vaccine candidate.

Novavax was up 12.79% at $167.86 Monday afternoon. 

Novavax Daily Chart Analysis

• Novavax shares are recovering back into what technical traders call a pennant pattern after falling below support for a short time.
• The price has been getting condensed between narrowing highs and lows and nears the end of the pattern. After a fake break of support, the pattern still holds and still could go either way.
• 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) made a jump higher the past few days and now sits at 50. This shows that the buying pressure has increased enough to become equivalent to the selling pressure.

See Also: Why Are Novavax Shares Trading Higher Today?

What’s Next For Novavax?

Bullish traders are looking for the stock to continue to trade within the pattern and for the stock to go on and eventually break above pattern resistance. Holding above pattern resistance is a sign the stock is ready to continue on its run even higher.

Bearish traders are looking to see the stock fall back below the pattern support and for the stock to continue on its way down. Holding below pattern support is a sign that the stock is ready to continue trading lower.