Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Chart Of The Day: Moderna Shares Receive A Painful Jab From The U.S. CDC

Published 09/01/2021, 09:26 AM
Updated 09/02/2020, 02:05 AM

Shares of Moderna (NASDAQ:MRNA) stalled last week as markets awaited information from a US Centers for Disease Control (CDC) panel on COVID vaccine recommendations. On Monday, the CDC panel's initial guidance was released: they unanimously recommended the Pfizer (NYSE:PFE) BioNTech (NASDAQ:BNTX) shot for everyone age 16 and older.

It wasn't exactly good news for Moderna. On Tuesday the stock had already lost 2.7% in the premarket, after Japan pulled 1 million more of the biotech's vaccines from distribution, adding to the 1.63 million doses already pulled last week after two deaths occurred, due to contamination.

There was better news for the drugmaker yesterday: a study involving Belgian health care workers, published in the Journal of the American Medical Association on Monday, found that Moderna produces double the antibodies of the Pfizer vaccine, which could create more demand for the MRNA inoculation going forward.

Still, the current supply and demand dynamics for the stock aren't stellar.

MRNA Daily

Moderna completed a rising flag, after the price crossed below its recent uptrend line, potentially bearish after the 29% plunge in the first half of August.

The price attempted to rise over the last few of sessions, but produced long upper shadows, demonstrating the bulls backtracking as bears push the price lower.

The MACD’s short MA crossed below the long MA, producing a sell signal as the price fell below its uptrend line. The RSI topped out, demonstrating weakening momentum.

Trading Strategies

Conservative traders should wait for the price to retest the flag’s low, supported by a hammer, then to return toward the pattern and find selling pressure, before risking a short.

Moderate traders would also hold off till the price falls, then rises for a better entry, if not for confirmation.

Aggressive traders could immediately sell, provided they accept the added risk of moving before the rest of the market.

Trade Sample

  • Entry: $377
  • Stop-Loss: $402
  • Risk: $25
  • Target: $302
  • Reward: $75
  • Risk:Reward Ratio: 1:3

Latest comments

can u help me how to invest
MRNA had a monster run up. Reasonable to expect a breather.
yeah the monster dead
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.