Novavax (NVAX) rallied Tuesday on the heels of their Q1 2023 results and positive trial data. A large layoff announcement may also be helping the stock rally. Let's check out the charts and indicators to see if this a short-term move or the start of something more substantial.
In this daily bar chart of NVAX, below, I used a log scale to get some perspective on the price action. Here I can see that prices gapped higher Tuesday. NVAX is above the 50-day moving average line now and the average is beginning to bottom. The slope of the 200-day line is still negative.
The On-Balance-Volume (OBV) line looks like it has bottomed in March and April signaling a shift towards more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is edging above the zero line.
In this weekly Japanese candlestick chart of NVAX, below, I can see that this stock has made a huge decline over the past two plus years. Prices have stabilized over the past four months. Four months is not a big base but it can be a start.
NVAX still trades below the declining 40-week moving average line but the OBV line is showing improvement. The MACD oscillator has been rising the past 12 months but is still below the zero line.
In this daily Point and Figure chart of NVAX, below, I can see a potential upside price target in the $19 area.
In this weekly Point and Figure chart of NVAX, below, I used a five box reversal filter. Here the software suggests a $27 price target.
Bottom line strategy: NVAX is seeing heavy trading volume Tuesday and I view that as a positive for the stock. Aggressive traders could go long NVAX at current levels looking for gains to $19 and maybe $27 by year end. Risk to $8.
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