This may surprise you. It’s been overlooked. Many did not even notice how much it climbed this year. See while household names like Moderna and Pfizer have been splashed across headlines with their vaccine announcements there is one vaccine stock chugging along. 

Believe it or not, BioNTech SE has rewarded investors the most in 2021. Up 94.12% this month and 408.39% year to date, it has seriously staggering, eye-watering gains!

BioNTech SE (NASD: BNTX) soared 17.80% yesterday and traded 13.7m shares. Impressive, to say the least, as the biotech company has an average volume of 3.29m shares and an ATR of 22.42.

BNTX is up 94.12% on the month, 142.69% on the quarter, and 408.39% year to date. Those are seriously staggering, eye-watering gains! 

Can its hot streak continue? Is now the time to get bearish? 

What is BNTX?

According to Markets Insider, BNTX is a next-generation immunotherapy company, which treats cancer and other serious diseases. It exploits an array of discovery and therapeutic drug platforms for the development of novel biopharmaceuticals. 

The company’s infectious disease and oncology product candidates portfolio includes FixVac, iNeST, Intratumoral Immunotherapies, RiboMabs, RiboCytokines, CAR T Cell Platform, T Cell Receptor(TCR), Checkpoint Immunomodulator, Targeted Cancer Antibodies, and Small Molecule Immunomodulators. 

Shares of BNTX are experiencing incredible momentum at the moment. As of yesterday’s close, the stock was trading 666.06% above the 52w low and 17.05% above the 52w high.

The stock has an average target price of $195.09, which is considerably less than yesterday’s close of $414.44.

The share price is extended from crucial moving averages signaling that a pullback could soon take place. The 200d SMA is at $150, and the 50d SMA is $240.

Market Cap: 95.29B

Float: 214.95m

Short Interest: 0.95%

Average Volume: 3.29m

ATR: 22.42

What has been the recent catalyst?

Yesterday it was reported that the FDA would likely approve the Pfizer-BioNTech COVID-19 vaccine by early September. This approval could further bolster the demand for the vaccine.

The company is scheduled to report its second-quarter update on August 9th, which may prove to be another positive catalyst for the stock.

Although the short interest is low in the stock, the stock can be shorted, and intraday traders have been attempting to find the top. Momentum has firmly been to the upside, and each day the stock trades higher, shorts have to cover their position resulting in more buying.

Could Yesterday’s Action Signal A Top?

As I mention time and time again, as a trader, my job is not to predict! My role as a trader is to react to the price action. Having a detailed plan and understanding of what I am looking for to respond without hesitation.

BNTX is not a small-cap or low float stock that has experienced a euphoric but unsustainable rise in share value. Although the increase has been abrupt, this is a significant, sustainable, and impressive company adding immense value to society.

There are many factors that I take into consideration when deciding whether a stock has further upside or if it is time for a pullback. Let’s go over some of them:

• Where has the stock come from? Shares are up 408.39% year to date, and just yesterday, the stock traded its ATR over 2.5x and was up 17.8%. From a technical standpoint, this tells me that the risk: reward is no longer to the upside in the short-term as the stock has already come a long way.
• It is extended from crucial moving averages. The stock has now gotten extended from key moving averages, namely the 20, 50, 100, and 200d SMA.
• Abnormal volume on days of extension. Yesterday, as shares soared and the stock closed up 17.8%, the stock traded almost 4x the average volume. 

These points and observations have me on high alert for a potential pullback in the name. A pullback would be healthy as the stock needs to digest the breakout from 300 and should spend some time going sideways.

After trending higher yesterday, shares broke the trendline and closed almost $15 off the high. From now on, the high of $433.9 will play a crucial role. If the stock manages to reclaim this level and hold above, the stock might have a blow-off type move to the upside before pulling back.

The same can be said for the downside, though. If the stock fails to hold above $400, shares could retrace to yesterday’s opening area of $350.

As I said, for a stock that has traveled an immense distance, a pullback should be welcomed and viewed as a sustainable action that could ultimately result in the stock going higher in the future.