Is Moderna About To Bounce?

Moderna Inc. MRNA shares are trading lower Friday as most COVID-19 related stocks dropped.

Merck announced that molnupiravir, an investigational oral antiviral medicine, significantly reduced the risk of hospitalization or death at a planned interim analysis of the Phase 3 MOVe-OUT trial in at risk, non-hospitalized adult patients with mild-to-moderate COVID-19.

Moderna shares are trading down 11% to $341.66 at publication time.

See Also: Why Moderna, Novavax And Other COVID-19 Vaccine Stocks Are Plummeting

Moderna Daily Chart Analysis

• The stock looks like it was recently able to bounce at support and has started to head higher in what technical traders call a sideways channel.
• The $320 level has been held as support in the past and saw a bounce off this level a couple of days ago. The stock found resistance near the $460 level multiple times in the past and may continue to in the future.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock has recently seen bearish sentiment.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) has been dropping lower the past few weeks and now sits at 22. This RSI is well into the oversold area, showing the stock is seeing much more selling pressure than buying pressure.

What’s Next For Moderna?

Bullish traders saw a possible bounce at support and are hoping to see the stock begin to form higher lows and work its way back up toward resistance. Eventually, bulls would like to see a break of resistance and a possible further bullish push.

Bearish traders would like to see the stock start falling once again and drop below the $320 support and begin to hold the level as resistance. If the level began to hold as resistance, the stock may be able to see a further bearish push.