Moderna Cracks Below Support, Is A Recovery In Sight?

Moderna Inc MRNA shares are trading lower Thursday after the company announced its COVID-19 sales came in short of Wall Street analysts estimates by more than $1 billion. The company reported $5 billion in revenue for the third quarter of the year, missing the analyst estimate calling for $6.2 billion.

Moderna shares were trading down 18.45% at $282.02 Thursday at publication.

Moderna Daily Chart Analysis

• The stock looks to have gapped below the higher low trendline in what technical traders call an ascending triangle pattern.
• The $460 level has been an area where the stock has struggled to cross above in the past. The higher low trendline is an area that was support, but now as the stock is below it, it could begin to hold as a resistance level.
• The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
• The 50-day moving average may act as an area of resistance, while the 200-day moving average may hold as support.
• The Relative Strength Index (RSI) dropped lower and now sits at 33 on the indicator. This nears the oversold area and shows there are more sellers in the stock than there are buyers.

See Also: Why Are Moderna Shares Plunging Today?

What’s Next For Moderna?

Bullish traders are looking to see the stock recover back above the higher low trendline and continue to trade within the pennant pattern. Bulls are then looking to see the stock break above the resistance level and hold above it to possibly see a further bullish push.

Bearish traders got part of what they wanted to happen, the stock to fall below the higher low trendline. Bears are hoping to see the stock be unable to cross back above this trendline for a possible further bearish move in the future and a possible trend change.

Photo by mahdis mousavi on Unsplash