What's Going On With Vaxart's Stock?

Vaxart Inc. VXRT shares traded higher Tuesday after a study titled "A Phase 2 Trial With an Oral Tableted Covid-19 Vaccine" was posted to Clinicaltrials.gov. This may have inspired retail traders to buy the stock.

Vaxart closed up 4.89% at $7.30.

Vaxart Daily Chart Analysis

• Shares look to have broken out of a pennant pattern on the downside, breaking below support.
• The stock had been getting condensed between narrowing highs and lows and broke below the support in the pattern. Traders are now watching to see if the old support will hold as resistance.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment looks to be bearish.
• Each of these moving averages may hold as a potential area of resistance in the future.
• The Relative Strength Index (RSI) has been fading lower the past few weeks and now sits at 38. This indicates the stock is seeing more selling pressure than buying pressure, the stock is close to the oversold zone that starts at 30.

What’s Next For Vaxart?

Bullish traders want to see the stock bounce and start heading higher. Bulls want to see steady growth with higher lows for the growth to be considered healthy. Bulls then want to see the stock break above the pattern support.

Bearish traders are in control as of now and would like to see the stock continue to fade lower and stay below the moving averages. If the pattern support and moving averages can continue to hold as resistance, the stock may be ready for a strong push lower.