NVAX- a medical penny stock Buy Weakness LONG
NVAX on a 120 minute chart demonstrates a trend down in the past month after a period of
consolidation producing the POC line on the volume profile. The MACD shows some bullish
divergence. The volume profile has high volume nodes at 4.0 and 5.0 separated by a relative
volume void. NVAX fell quickly through that void. It can just as easily rise through it. See the
linked article on NVA from TipRanks. Options volume and pricing analysis is that bets are looking
at5.0 diligently. Fundamentally, NVAX has been range limited by its focus on COVID but it does
have other projects in its pipeline admittedly on various timelines with varying probabilities
of capitalizing on them depending on clinical trials FDA approvals and so on. On the imbedded
relative strength table as compared with SPY and peers in the pharmaceutical, biotechnology,
medical device and healthcare spaces NVAX compares favorably with MRNA its closest peer
but is weak compared with most of the others I have selected especially with LLY, which is
high-flying from its anti-obesity drug breakout. Device companies Stryker and Intuitive Surgical
are quite strong as well. United Healthcare is dominant in the insurance subsector and strong
overall.
One often effective strategy is to buy when an instrument is oversold and undervalued at a
discount. I will buy NVAX here no matter that I have insider connections with one of those
medical device companies and a few not on the list. Sentiment only goes
so far. I found the article compelling and so Novavax long I go. On a trading site left unsaid
my screenname is "Bottom Feeding Grinder". I have an appetite for NVAX found at the bottom
right now. This is a reversal/reversion to the mean long trade. It is not without risk. As a
penny stock with high volumes, low cost of entry and perhaps low floats, volatility is
underscored and exaggerated if a volume inflow gets underway That said, a short squeeze
is within the spectrum of possibilities. Enough said for now.
consolidation producing the POC line on the volume profile. The MACD shows some bullish
divergence. The volume profile has high volume nodes at 4.0 and 5.0 separated by a relative
volume void. NVAX fell quickly through that void. It can just as easily rise through it. See the
linked article on NVA from TipRanks. Options volume and pricing analysis is that bets are looking
at5.0 diligently. Fundamentally, NVAX has been range limited by its focus on COVID but it does
have other projects in its pipeline admittedly on various timelines with varying probabilities
of capitalizing on them depending on clinical trials FDA approvals and so on. On the imbedded
relative strength table as compared with SPY and peers in the pharmaceutical, biotechnology,
medical device and healthcare spaces NVAX compares favorably with MRNA its closest peer
but is weak compared with most of the others I have selected especially with LLY, which is
high-flying from its anti-obesity drug breakout. Device companies Stryker and Intuitive Surgical
are quite strong as well. United Healthcare is dominant in the insurance subsector and strong
overall.
One often effective strategy is to buy when an instrument is oversold and undervalued at a
discount. I will buy NVAX here no matter that I have insider connections with one of those
medical device companies and a few not on the list. Sentiment only goes
so far. I found the article compelling and so Novavax long I go. On a trading site left unsaid
my screenname is "Bottom Feeding Grinder". I have an appetite for NVAX found at the bottom
right now. This is a reversal/reversion to the mean long trade. It is not without risk. As a
penny stock with high volumes, low cost of entry and perhaps low floats, volatility is
underscored and exaggerated if a volume inflow gets underway That said, a short squeeze
is within the spectrum of possibilities. Enough said for now.
Trade active:
Patience is a virtue. Holding full position. Other trades this week taking attention away from med sector. In no hurry here.
Comment:
Sideways for the close of the week. Awaiting the end of teh stock earnings to draw trader attention maybe?