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When the world saw a massive outbreak of covid-19 pandemic, it forced the people to stay “underground” but pushed the healthcare companies to stand on the vanguard. Now the recent news regarding the outbreak is spreading like a wildfire, it can be an indication for the companies to take guard again. Recently, one of the firms Novavax Inc. (NASDAQ: NVAX) was seeing a decline in their price. But does the news hold a potential to influence NVAX stock in the future?
Novavax has a Volatile Past
The stock has remained highly volatile over the years. The company has to stand against the industry giants like Pfizer (NYSE: PFE), Johnson and Johnson (NYSE: JNJ) and more. Earlier this month they announced that they will develop covid-19 shots in Canada. According to Reuters the organization has reduced their revenue target from $2 Billion to $2.3 Billion.
In June 2020, the company landed the biggest covid-19 vaccine contract during the Trump administration. The New York Times reported that this is a “dramatic turnaround for an organization standing on the verge of collapse”. Reason behind the outcome remained the technology they were using to develop the vaccine. Their method utilized moth cells to pump out vital molecules which was more effective in contrast to what others were doing.
NVAX Stock Price Action
Company shares have lost over 90% value since the year’s beginning. Quarterly financials have gone negative for the organization. The regression channel shows price in a neutral zone, much like the view the analysts hold at TradingView. The oscillator shows declining activity concerning NVAX stock, though it has started increasing again.
The market has pulled the value lower throughout the year but a price surge is visible in June 2022 that went down during the quarterly earnings reveal. The move caused Bollinger Bands to scale a bit, indicating price volatility in the stock throughout this period. It remained on a bearish path while staying less volatile in the months ahead.
A triple top pattern is visible after the latest earnings reveal followed by more decline, leading shares to trade at the yearly low of $9.36. Currently, the stock was slightly up, changing hands at $9.66 at the publication time. Bollinger Bands are getting narrowed down, indicating decreased volatility in the shares. This also points towards a possible consolidation phase for Novavax stock.
Currently, the stock has broken its previous support level at $10 while holding a resistance around $12 considering the decline in value this week. Yesterday, the news broke that China registered a record 37 Million covid-19 cases, which has created a chaotic scenario globally. This may cause the companies in the healthcare sector to come forward to aid the situation.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
