Photo by Mufid Majnun on Unsplash

Novavax, Inc. (NVAX) shares are trading higher Monday after the company submitted a request to the U.S Food and Drug Administration for Emergency Use Authorization of its COVID-19 vaccine, NVX-CoV2373.

Novavax was up 13% at $93.70 Monday afternoon at publication.

Novavax Daily Chart Analysis

• The stock is seeing a bounce after a strong bearish move when it fell below higher lows in what traders call a pennant pattern. The strong volume traded during the bounce is a sign a reversal could be happening.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates the sentiment has been bearish, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a jump higher Monday and moved up to 37 on the indicator. This shows that a large number of buyers entered the market, but the stock still has more sellers overall.

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What’s Next For Novavax?

The stock is bouncing and showing signs of reversal, but it still trades in an overall downward trend. The trend may reverse if the stock can begin to see higher lows and an increase on the RSI. Bullish traders are looking to see the higher lows form, the RSI to cross the middle line and for the price to eventually cross above the moving averages. Bearish traders are looking for the stock to continue to fall and form lower highs as well as see the RSI fall back into the oversold region.