The CDC narrowed its age recommendation for the company’s RSV shot
British biotech stock GSK plc (NYSE:GSK) is trading lower, though it pared its steeper losses today, down 1% at $38.49 at last glance after earlier sliding as much as 7%. This negative price action comes after the Centers for Disease Control and Prevention (CDC) narrowed its age recommendation for the company’s RSV shots to above 74 years of age from the previous 60 years of age.
Looking to extend last session’s 3.6% drop, the equity is trading at its lowest levels since January, though still up 3.8% since the start of the year. Following GSK’s sharp early-June bear gap, the 10-day moving average moved in as pressure for the rest of the month, with the equity losing 14.1% since June 1. It’s also worth noting that the stock’s 14-day relative strength index (RSI) of 8.8 sits firmly in “oversold” territory, which typically precedes a short-term bounce.
Call traders seem to be betting on this rebound, as calls are running at quadruple the intraday average volume. The August 40 call is the most popular, with new positions being bought to open there.