Nanoviricides Inc. (NYSE: NNVC) shares are surging higher Tuesday following news of the company reporting significant advantages gained by remdesivir encapsulation within its lead COVID-19 candidate, thus showing a potential pan-coronavirus cure.
Nanoviricides was up 55% to $5.79 at publication time.
Nanoviricides Daily Chart Analysis
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Shares look to be nearing the end of what technical traders could call a pennant pattern.
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The stock has been getting pinched between narrowing highs and lows on the chart for a time. The stock doesn’t have much room to move without breaking above resistance or below support. A break may cause a further move in the same direction as the break.
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The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
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Each of these moving averages may hold as a possible area of resistance in the future.
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The Relative Strength Index (RSI) has been dipping lower the past few days and now sits at 45. This shows that some of the buyers moved out of the stock and that there’s slightly more selling pressure than buying pressure now.
What’s Next For Nanoviricides?
Bulls would like to see the stock break above pattern resistance and make a strong bullish move. Following a bullish move, bulls are looking for a period of consolidation before the stock could make a second leg higher.
Bears are looking for a break of pattern support and for the stock to dip lower. Consolidation below support is key for bears to possibly see another bearish move.
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