Vaxart Looks To Be On The Verge Of Breaking Out Of A Pattern

Vaxart Inc. (NASDAQ: VXRT) shares are trading lower Monday, possibly after retail traders were able to push the stock higher. The stock looks to be almost breaking out of a technical pattern.

Vaxart was down 4.74% at $8.35 at last check Monday afternoon.

Vaxart Daily Chart Analysis

• Shares look to be nearing the end of what technical traders call a pennant pattern, possibly ready to break out with a stronger move soon.
• The stock had been getting condensed between narrowing highs and lows and looks ready to break out in the coming days.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment looks to be bullish.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been moving sideways the past couple weeks and now sits at 46. This shows that there are slightly more sellers in the stock than there are buyers.

What’s Next For Vaxart?

Bullish traders are looking to see Vaxart’s stock break above the pattern resistance and make a push higher on high volume. Following a breakout, bulls are then looking to see a period of consolidation before the stock possibly moves on a second leg up.

Bears are looking to see the stock fall below the pattern support and possibly make a move lower. If the stock can hold the pattern support as a resistance level, then it could see a push lower.

Photo: Trust "Tru" Katsande via Unsplash