Moderna (MRNA) Dives Toward Support, Will It Hold?
Moderna, Inc. engages in the development of transformative medicines based on messenger ribonucleic acid (mRNA). Its product pipeline includes the following modalities: prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, and systemic intracellular therapeutics.
Take a look at the 1-year chart of Moderna (MRNA) below with added notations:
Chart of MRNA provided by TradingView
After putting in its 52-week low at $115 back in June, MRNA retested that low again earlier this month (green). The stock looks like it is in freefall, headed back down to that support again, where another bounce may develop. However, a break of the low likely signals lower prices to come for MRNA.
The Tale of the Tape: MRNA has key support area around $115. A trader could enter a long position at or around the mark with a stop placed under it. If the stock were to break below the support, a short position could be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Christian Tharp, CMT