Our Sell thesis on Novavax stock played out well in May, falling 30% to its June bottom. However, a rapid run-up from June's oversold zones has overturned it.

However, we postulate that its rapid surge is likely unsustainable, given its price structures. Notwithstanding, a bull trap has yet to form.

We posit that the recent revival in the biotech space could have lifted sentiments in NVAX, given similar price surges. But, the IBB ETF remains in a bearish bias.

Therefore, we reiterate our Sell rating on NVAX. We encourage investors to use the recent surge to cut exposure. However, investors should wait for a bull trap before executing a bearish set-up.