Novavax Inc. ( NVAX) is rallying Friday on the heels of it getting emergency regulatory approval from the World Health Organization for its Covid vaccine. This seems like an appropriate reason to look at the charts of NVAX.
In the daily bar chart of NVAX, below, we can see that the shares have chopped sideways since February. NVAX developed support (buying interest) around $120 and rallied from October to late November. Prices pulled back into early December to a higher low at $140. NVAX has turned higher and looks poised to break above the November high to create an uptrend -- higher lows and higher highs. The slope of the 50-day moving average line has turned positive and NVAX has crossed above the 200-day line, which is bottoming.
The On-Balance-Volume (OBV) line shows a small decline from September but the start of improvement this month. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line.
In the weekly Japanese candlestick chart of NVAX, below, we can see an improving technical picture. Prices have traded sideways for many months and have recently strengthened above the 40-week moving average line.
The weekly OBV line was steady for months but shows the start of improvement from October. The MACD oscillator is poised to cross above the zero line for a new outright buy signal.
In this daily Point and Figure chart of NVAX, below, we can see a price target in the $345 area.
Bottom-line strategy: Some analysts may wait for a breakout over the September high to go long NVAX but I like the risk/reward set up now. Traders could go long NVAX at current levels risking to $145. Add on strength. The $345 area is our price target for now.
