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Vaccine Stocks: Trading Moderna, Pfizer and Novavax Amid Omicron Outbreak

Vaccine stocks are in the spotlight as the Omicron Covid variant runs around the world. Let's look at how the charts are setting up now.

Vaccines have been in heavy demand due to the ongoing Covid-19 pandemic. As a result, the major vaccine stocks have been in the spotlight.

They are largely identified as Pfizer  (PFE) - Get Pfizer Inc. Report, Moderna  (MRNA) - Get Moderna, Inc. Report, Novavax  (NVAX) - Get Novavax, Inc. Report and Johnson & Johnson  (JNJ) - Get Johnson & Johnson Report, among others.

Over the last few weeks, the Omicron variant has gained serious traction and has acted as another stock market headwind.

The threat of another Covid-19 variant forced stocks to begin under pressure on Monday while vaccine stocks popped at the open.

Interestingly though, many have reversed lower and given up all of Monday’s gains. Let’s look at the charts now.

Trading Pfizer Stock

Daily chart of Pfizer stock.

Daily chart of Pfizer stock.

Pfizer is the best-looking stock of the trio and has been a go-to long for bulls over the past week.

After a two-times daily-up rotation over $52.85 last week, Pfizer stock exploded up through $55, then cleared $60. Shares are trying for an inside-and-up rotation, but clearly could use a rest.

Over last week’s high of $61.43 and $62.75 is in play. However, as long as the trend remains intact, the 261.8% extension near $69.50 is also in play.

On the downside, let’s see how the stock handles a dip to the 10-day moving average. If bulls don’t step in and buy the dip, a retest to the $55 breakout area and the 21-day moving average may be next.

Trading Moderna Stock

Daily chart of Moderna stock.

Daily chart of Moderna stock.

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Moderna stock is an interesting one, as shares gapped higher by 9% this morning. The move came as data showed a booster shot defended against the Omicron variant.

However, the opening price was also the session high on Monday and shares are now down by about 4% on the session.

That’s a huge swing and very disappointing, particularly as shares knife through the 10-day and 50-day moving averages.

From here, let’s see if Moderna stock can hold the 200-day moving average. Below this measure puts uptrend support (blue line) in play.

On the upside, let’s see if Moderna can reclaim the 50-day and the $300 level. Above that puts today’s high in play near $321, followed by the 21-week moving average and weekly VWAP measure near $350.

Trading Novavax Stock

Daily chart of Novavax stock.

Daily chart of Novavax stock.

Like Moderna, Novavax started off strong on Monday ahead of EU approval for its vaccine.

Shares gapped higher by 5.8%, rallied as much as 8.8% and then reversed lower, now down 6% on the day.

The stock tried to give us a monthly-up rotation over the November high at $229, but failed to stick the rotation. Instead, the vital $230 level rejected the stock.

Now it’s struggling to hold the 200-day and 21-week moving averages, as well as the weekly VWAP measure.

A dip below these measures could put the 50-day in play, followed by uptrend support.

On the upside, bulls really need to see Novavax clear $230 to gain any notable traction. If it can do that, $250 could be in play, followed by the high up near $288.