Novavax Inc. (NASDAQ:NVAX) shares lost ground Monday fell below support in a pennant pattern.
The stock has also seen a strong drop in its Relative Strength Index.
Novavax was down 6.12% at $79.47 at the close Monday.
See Also: How To Buy Novavax Stock
Novavax Daily Chart Analysis
- The fall below the pennant pattern shows that bears have taken control of the stock as higher lows were unable to continue to form. The price may continue to fall until it can form higher lows, where a bottom may be formed.
- 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 since November and now sits at 23. This shows the stock has fallen into the oversold region and that bears are pushing the stock lower. As the stock stays in the oversold region, it will see much more selling pressure than buying pressure.
What’s Next For Novavax?
The stock has been on a steady downward trend as the market has dipped, falling lower with the market as it turned bearish. Bears are holding the stock and are looking for the RSI to continue to stay oversold and for the stock to continue to form lower highs.
Bulls are looking to see a possible rebound and for the stock to begin to make higher lows for a time. Bulls want the price to cross back above the moving averages for the sentiment to turn back bullish again.
