Photo: Courtesy Novavax

Novavax, Inc. NVAX shares are trading higher Thursday after Australia’s national drug regulator granted approval for the company's COVID-19 vaccine.

The stock is trading below what traders call a pennant pattern and is showing uncertainty in where it could head next.

Novavax was up 1.32% at $93.55 Thursday at publication.

Novavax Daily Chart Analysis

• Shares are trading below what technical traders would call a pennant pattern after breaking below the pattern support line.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates the sentiment is bearish, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling and pushing lower with lower highs and sits at 28. This shows the RSI is in the oversold region and there is much more selling pressure in the stock than there is buying pressure.

(Click on image to enlarge)

What’s Next For Novavax?

The stock was given a bearish look after it fell below the support in the pattern. This shows the stock was unable to continue to form higher lows and bears took over. Bullish traders are looking to see the stock bounce back and climb back above the support level. This would show the stock is seeing strength once again and it could be ready for a breakout if it can cross above the pattern resistance line. Bears are in control of the stock and are looking to see it continue to fall lower while holding below the moving averages.