Novavax share increases in a model: technical analysis – Novavax (NVAX)
Novavax inc. The shares (NASDAQ: NVAX) were trading higher on Friday after the World Health Organization released an emergency use list for its NVX-CoV2373 COVID-19 vaccine. The stock is trading higher and has seen a push towards a resistance level in the pattern it is trading in.
Novavax was up 9.46% to $ 213.35 at noon on Friday.
See also: Why Novavax shares are increasing
Analysis of the Novavax daily chart
- Stocks leap higher in what traders call a pennant pattern. The stock has seen an upward gap and is pushing towards resistance. The stock was also able to climb above the 200-day moving average, a bullish sign.
- The stock is trading above the 50-day moving average (green) and exceeded the 200-day moving average (blue) on Friday. This indicates that sentiment is turning bullish and each of those moving averages may be a support area going forward.
- The Relative Strength Index (RSI) surged higher today and now sits at 59 on the indicator. This shows that many buyers have entered the stock and that there is a lot more buying pressure than selling pressure.
What’s the next step for Novavax?
Novavax trades on the pennant model and will likely continue to see its price condense between narrowing highs and lows until the stock breaks.
A breakout will occur when the stock breaks above resistance or pattern support on a day of above average volume and then pushes hard beyond the key level. Bulls look for a break above the pattern’s resistance, while the bears want the stock to fall below the pattern’s moving averages and support.