Could This Vaccine News Help Moderna Stock Recover?

Could This Vaccine News Help Moderna Stock Recover?

Moderna Inc MRNA shares are trading higher Friday after the FDA authorized its booster dose of COVID-19 vaccine in the U.S. for adults 18 years and older.

The company may also be moving on continued momentum after an announcement yesterday stating it filed for authorization of its COVID-19 vaccine, a 50 microgram two-dose series of SPIKEVAX, with Health Canada to include children ages six to 11.

Moderna shares were trading up 4.82% at $263.54 Friday morning at publication.

Moderna Daily Chart Analysis

  • The stock looks to be bouncing back and attempting to move back toward the higher low trendline after recently falling out of what technical traders call an ascending triangle pattern.
  • The $460 level has been a strong area of resistance for the stock as it was unable to break above this level. The higher low trendline had held as support before the break below. The stock is now attempting to bounce back and reclaim this higher low trendline to resume trading in the pattern.
  • 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) has been pushing higher for the past couple of weeks and now sits at 41. This shows the stock is seeing more buyers pushing into the market, although selling pressure still outweighs the buying pressure.

See Also: Why Moderna Stock Is Moving Higher Today

What’s Next For Moderna?

Bullish traders are looking to see the stock keep pushing back up and reclaim above the higher low trendline. This shows the stock still has some strength in it and could continue trading within the pattern. Bulls would then like to see the stock go on to break above the resistance level and begin to hold it as support.

Bearish traders are looking to see the stock stay below the higher low trendline and the resistance level and continue to fall lower. Bears are hoping to see the stock fall back below the 200-day moving average and have the RSI head lower toward the oversold area.

Photo: Ian Hutchinson via Unsplash

Posted In: Covid-19vaccineLong IdeasNewsShort IdeasHealth CareTechnicalsFDATrading IdeasGeneral