The Key Takeaways
- Moderna’s shares surged on Tuesday, as investors bet that its development of a H5N1 vaccine for bird flu could increase sales following the U.S. first report.
- Today, the stock’s volume was the highest since the triple witching session in December. The stock closed above the 50-day moving median with a decisive margin.
- Investors should watch significant overhead areas on Moderna's chart around $57, $72, and $85, while also monitoring important support levels near $44 and $37.
Moderna shares (MRNA) soared as investors bet on the potential of the H5N1 bird-flu vaccine developed by the pharmaceutical company to boost sales. This was after the U.S. reported the first case death from the disease.
Stocks are off to a great start in 2019 after more than half their value was lost by 2024. Sales of the Covid-19 product line have declined in recent years. However, spending on new drug research and development has increased.
Here we will break down Moderna’s chart in terms of technicals, and identify important levels on which investors should be keeping an eye.
The Decisive Closing Above the 50-Day Moving Avg.
Moderna’s shares, which broke out of a downward channel in December, have been trending higher. On Tuesday, the share closed decisively over the 50-day MA on its highest trading volume since the triple witching session that took place last year.
Moreover, with a relative strength (RSI), the index confirms bullish movement. It is above 65 but below the overbought level, which gives the stock enough room to reach higher prices.
Determine three areas above the stock price where shares may encounter resistance. Also, identify several levels which could offer support in a pullback.
Keep an eye on the following areas:
Around $57 is the first area of interest. In this area, the shares may be under selling pressure at the upper end of the consolidation period which formed between October last year and November the previous year.
If the share price closes above $72, it could lead to a climb towards the area of the chart near the low from early September and the subsequent peak in the counter-trend later in the month.
Additional buying could propel the stock to $85. Investors that purchased shares of the stock below this price point could sell them at the current level, near the multi-month horizontal trend line connecting the February low to a number of similar prices throughout August. The 200-day MA could provide resistance to this area, depending on when it is made.
Watch for Important Support Levels
Initially, during retracements investors need to keep an eye out for the $44 mark. The 50-day MA, as well as a trendline that stretches back to November midway in the short term are all supportive of this area on the chart.
Investors may be interested in buying around the swing low of November if the market breaks below the level.
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According to the article, as of its date of publication, the author did not possess any of these securities.
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