Novavax Inc. ‘s (NVAX) stock price sees a rise after a prolonged consolidation phase post-pandemic, and fell by 92.35% in over a year’s time. Novavax is among the top vaccine producers that have controlled the market since the pandemic. Novavax gained an Emergency Use Authorization (EUA), after Pfizer and Moderna, and its late entry meant it did not receive as much boost as other makers.
The effect was clearly visible in NVAX stock price as it went under indestructible bearish influence for a very long duration. Many analysts placed their bets on Nvax collapsing. But the reason behind Novavax’s late arrival also highlights its scaling issues. In November, it conceded an agreement to deliver 350 million vaccine doses due to insufficient production and logistical malfunction.
The downtrend observed in NVAX stock price reflected jittery sentiments post the spending cut and the nullified agreement. The step was taken to prepare for the fall vaccination campaign. However, other factors could have played a crucial role in determining the fate of NVAX share price.
Obstacle in the Course of Rally
In a report by Reuters, it said, Novavax may face uncertainty of revenue, funding from the US government, and pending arbitration with Gavi, the global vaccine alliance. However, its cash flow forecasts for Novavax indicate sufficient capital funds for operations.
The company also disclosed the US government does not plan on extending its agreement with Novavax beyond December 2023. This risks some of the remaining $416 million in that deal. It further mentions that its plan of action will depend on the outcome of the arbitration with Gavi. Novavax may be required to refund all or a portion of the $700 million fund received from the group. The fund given to the vaccine maker was meant to pay for doses of the company’s COVID vaccine for low-income countries.
NVAX Stock Price Action
NVAX stock price has been consolidating for almost a year, lining up with the timeline of the pandemic. The trading volume shows stagnant movement and a drained market. NVAX stock price has reclaimed the declining streak and hints at a possible breakout shortly. In order to maintain the momentum, NVAX share price may need a stronger push.
The Fib retracement shows NVAX stock price to move below the first level. Once this level is breached, it may face resistance at the third level near $41.15. In order to reach $76.78, Nvax share price has to break out of its primary resistance. The predicted rally may take time, but once initiated, may stay for a longer term.
RSI crosses over to the oversold zone indicating selling pressure in the market. MACD forms a closely knit negative cross, indicating minimal selling action largely due to inactive investors. Indicators may be hinting at the end of the bearish swing and the establishment of a high run.
Conclusion
NVAX stock price has shown a rise after a long nap and signals at possible high runs. The price consolidated for a while. The NVAX share price may require stronger support to change the trend as vaccine makers face declining markets after the majority of people in the United States are vaccinated.
Technical levels
Support levels: $5.70 and $5.00
Resistance levels: $41.15 and $76.78
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/17/nvax-stock-price-rises-ready-to-break-prolonged-consolidation/