NVAX has had significant down trending over a wide range of time. On the 4H chart it seems to
be pivoting from a swing bottom 3-4 days ago. This is accompanied by a cross of the MACD
lines under the histogram on that indicator and a flip of volatility on the relative volatility
indicator. NVAX has been subject to significant short selling. Price is presently nearly
two standard deviations below the mean anchored VWAP set in mid May. Basically it is in
deep undervalued oversold territory and now with a rise. The volume profile has a point of
control level considerably above the mean VWAP. This is the level with the highest volume
of trades showing most trades occurred well above VWAP. This would be traders taking
profit and selling or alternatively short sellers opening a position but more likely a combination
of them. Price wants to ascend to at least VWAP if not the POC line. My analysis is that
any significant rise could begin a squeeze on short positions. Those closing with a buy to
cover trade would in effect be synergizing new buyers and add to the bullish momentum,
Accordingly, I will open a position early and see if I can get in ahead of a potential
short squeeze. While speculative, a narrow stop loss at 6.80 the second band line below
the mean VWAP will take a lot of risk off the trade and allow me to be patient comfortably
watching the price action.
be pivoting from a swing bottom 3-4 days ago. This is accompanied by a cross of the MACD
lines under the histogram on that indicator and a flip of volatility on the relative volatility
indicator. NVAX has been subject to significant short selling. Price is presently nearly
two standard deviations below the mean anchored VWAP set in mid May. Basically it is in
deep undervalued oversold territory and now with a rise. The volume profile has a point of
control level considerably above the mean VWAP. This is the level with the highest volume
of trades showing most trades occurred well above VWAP. This would be traders taking
profit and selling or alternatively short sellers opening a position but more likely a combination
of them. Price wants to ascend to at least VWAP if not the POC line. My analysis is that
any significant rise could begin a squeeze on short positions. Those closing with a buy to
cover trade would in effect be synergizing new buyers and add to the bullish momentum,
Accordingly, I will open a position early and see if I can get in ahead of a potential
short squeeze. While speculative, a narrow stop loss at 6.80 the second band line below
the mean VWAP will take a lot of risk off the trade and allow me to be patient comfortably
watching the price action.
Trade active:
Having traded through the premarket NVAX is for the moment heading up.
www.tradingview...chart/DFkQVEdC/?symbol=EIG...
www.tradingview...chart/DFkQVEdC/?symbol=EIG...
Trade active:
NVAX got a nice pop and so half the position off the table. Will take half of remaining off tomorrow and run the remaining 1/4 for the weekend. All on
a lackluster day /week in the general market.
a lackluster day /week in the general market.