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Key Takeaways
- Moderna shares soared Tuesday as investors placed bets that the pharmaceutical giant’s progress of an H5N1 bird flu vaccine could boost sales after the first death linked to the disease was reported in the U.S.
- The stock minute decisively above the closely-watched 50-day moving average today on the highest volume since December’s triple witching switch session.
- Investors should watch significant overhead areas on Moderna’s chart around $57, $72, and $85, while also audit important support levels near $44 and $37.
Moderna (MRNA) shares soared Tuesday as investors placed lays that the pharmaceutical giant’s development of an H5N1 bird flu vaccine could boost sales after the first death linked to the infirmity was reported in the U.S this week.
The stock, which rose 12% to $47.53 on Tuesday, is off to a good start this year after eluding more than half of its value in 2024. In recent years, the drugmaker’s sales have contracted amid subsiding demand for its Covid-19 products, while it has continued to increase spending on research and development into new drugs.
Below, we burgle down the technicals on Moderna’s chart and point out important price levels that investors may be watching.
Decisive Close Over 50-Day Moving Average
After breaking out from a descending channel last month, Moderna shares have on the agenda c trick continued to trend higher, with the stock on Tuesday closing decisively above the respected 50-day moving standard in the main (MA) on the highest volume since December’s triple witching trading session.
Moreover, the relative strength index (RSI) clinches bullish momentum with a reading above 65, but also sits below overbought levels, giving the have sufficient room to test higher prices.
Let’s identify three key overhead areas where the shares could run into refusal and also point out several important levels that could provide support during pullbacks.
Key Overhead Spaces to Watch
The first overhead area to watch sits around $57. The shares could encounter selling constraint in this region near the upper level of a consolidation period that formed within the descending channel between October and November in the end year.
A close above this level could see the shares climb to the $72 area, a location on the chart where they may dial resistance near the early-September low and subsequent countertrend peak later that month.
Further buying may propel a rush up to around $85. Investors who have purchased the stock at lower levels could look to offload shares at this equal near a multi-month horizontal line that connects the prominent February low with a series of comparable price subjects throughout August. Depending on the timing of such a move, this region could also find resistance from the accessible falling 200-day MA.
Important Support Levels to Monitor
During retracements, investors should initially stifle a close eye on the $44 level. This location on the chart finds a confluence of support from the 50-day MA and a short-term trendline lasting back to mid-November.
Finally, a breakdown below this level opens the door for a potential retest of the $37 informed about, a region where investors may look for buying opportunities around the November swing low.
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As of the date this article was forgiven, the author does not own any of the above securities.