Is Novavax stock a buy as the company awaits FDA approval to begin vaccination in the USA?

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Novavax, Inc. (NASDAQ:NVAX) has risen in recent days following its request to the Food and Drug Administration to allow its Covid vaccine to be used in an emergency.

If approved, Novavax’s vaccine would provide Americans who are wary of messenger RNA vaccines from Pfizer (PFE) and Moderna (MRNA) with a DNA-based alternative. Australia, South Korea, India, Indonesia, and Europe have already approved the shot.

However, Novavax’s stock has fallen due to the proliferation of the omicron version. In terms of cases, the omicron form is presently ahead of the delta variant. It also has a variation known as B.A.2. Vaccines are rendered ineffective due to mutations in Omicron’s spike protein. Boosters, according to the companies, can restore virus-blocking antibodies to healthy levels.

Novavax stock technical analysis

Source – TradingView

Novavax stock has been severely impacted by the emergence of new Covid-19 variants.

The stock of Novavax has a Relative Strength Rating of 6. In terms of 12-month price performance, the RS Rating compares all companies, independent of industry groups. On this metric, NVAX stock ranked in the top 6% of all stocks; the majority of leading stocks have RS Ratings of at least 80.

From the stock chart, the NVAX stock isn’t currently establishing a clear chart pattern. On February 9, the stock was trading substantially below its 50-day and 200-day moving averages.

So, is NVAX stock a buy?

NVAX stock didn’t have any purchase entry as of Feb. 9, and trading below its 50-day line is still a negative sign. Also, shares aren’t establishing a new chart pattern right now. When a stock hits a purchase point and is within its 5% chase zone, investors are encouraged to buy it, unfortunately this isn’t the case with NVAX.

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