Here’s your trade on Novavax ($NVAX) (January 27, 2021)
NVAX
I want to look at Novavax ( NASDAQ: NVAX ) today; I don’t think it’s in a short squeeze and that’s a nice thing. This is the way I see this, this stock looks really, really close to breaking out. If we draw a line at the 130.00 level you can see all of these spikes where the stock has run above 130.00 and then pulled back.
Basically, other than a couple of times like today being one of them, a few times here the stock has closed above 130.00. But generally speaking, I would say you have got to kind of look at it as being in this price range. But the nice thing is, even when it pulls back it’s not like it really implodes. We are really just getting a stock that is printing similar highs, horizontal highs, and then higher lows. Now, I am seeing how this stock has traded today, heavier than average volume, and I like that.
This would be my idea for a trade; I think that this stock had a big gap and crap back here on high volume, so that’s a lot of pain. What that translates into is, all of the folks that bought up here wished to heck they didn’t because the stock is lower, so they are all losing money. It takes a while as the stock continues to the right, time marches on.
More and more of these unhappy traders are taking losses. They are just saying, alright, I have got to get out of here, I’m done with this. And so over time all of this supply from the pain goes away and ultimately that is going to lead the way or I should say, leave room for higher prices up here.
What I would suggest doing is, you look at the high today of 136.34, maybe set a price alert at 136.00 to kind of give you the heads-up. But if this stock runs above 136.34 I think you could get a pretty nice move to the upside, it’s kind of time for that. If you want to be buying early in anticipation of that, that’s fine too.
I don’t know exactly what’s going to happen with the stock, I’m not going to tell you otherwise. But I just know this, a lot of people are buying in anticipation of this move, of this breakout above $130.00, right? And every single time they have done it, it hasn’t really worked out too well for them, has it? And so here we are, we sit here and we’ve got the same issue. That’s why I say I think it’s better to wait until the stock breaks out above this high before you buy. Because until it does that, then by definition it is still just kind of stuck in congestion.
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