Novavax Inc. NVAX shares were trading higher Tuesday after the head of Vaccines Task Force for the European Medicines Agency reportedly said the company's COVID-19 vaccine could soon receive authorization in Europe.

A final decision will take place next week when it is expected the agency will approve the vaccine.

Novavax was up 25.62% at $178.20 at the last check.

Novavax Daily Chart Analysis

• Shares look to have bounced back higher and are once again trading within what technical traders call a pennant pattern.
• Narrowing highs and lows have condensed this pattern, and it is nearing the point where there is not much room for the stock to go. When this point happens the stock may break out of the pennant pattern and see a strong move in the same direction as the break.
• The stock crossed above the 50-day moving average (green) Tuesday but trades below the 200-day moving average (blue), indicating sentiment in the stock looks to be turning slightly more bullish.
• The 50-day moving average may hold as support in the pattern, while the 200-day moving average may act as a resistance level.
• The Relative Strength Index (RSI) bounced back a bit after falling for the last few weeks and sits at 49. This shows an increase in the amount of buyers in the stock and shows the overall buying pressure almost equals the selling pressure.

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What’s Next For Novavax?

Bullish traders are looking to see the stock continue to trade within the pennant pattern for a while before breaking above the pattern resistance. A break above pattern resistance with a period of consolidation would hint that the stock may be ready to continue on a bullish run higher.

Bearish traders are looking to see the stock fade back below the pattern support once again. If the stock can hold below the pattern support, it may be ready to see a strong bearish push in the future.