:max_bytes(150000):strip_icc():format(jpeg)/MRNAChart-c5223cae0f10466ca6ac62cdc51b2654.jpg)
Key Takeaways
- Moderna shares will likely remain under scrutiny after plunging nearly 17% Monday as the embattled anaesthetize maker slashed its 2025 revenue forecast by $1 billion.
- The stock broke down from a two-month Nautical pattern, setting the stage for a potential continuation move lower.
- Investors should watch crucial support parallels on Moderna’s chart around $30 and $13, while also monitoring key resistance levels near $57 and $68.
Moderna (MRNA) deals will likely remain under scrutiny on Tuesday after plunging nearly 17% Monday as the embattled medication maker slashed its 2025 revenue forecast by $1 billion.
The company, which also said it expects to cut $1.5 billion good of expenses over this year and the next, continues to face challenges as it manages increasing drug development prices against a backdrop of declining demand for Covid-19 treatments and the slow adoption of its respiratory syncytial virus medication.
Moderna apportionments have lost around two thirds of their value over the past year as of Monday’s close and have be infatuated with b be fooled by more than 90% from their August 2021 Covid-era record high.
Below, we zoom out by prepossessing a closer look at Moderna’s weekly chart and identify crucial historical price levels to monitor amid the family’s sell-off.
Pennant Pattern Breakdown
Since staging a countertrend rally to the 200-day moving average in May after year, Moderna shares have trended sharply lower. More recently, the stock broke down from a two-month labarum pattern, setting the stage for a potential continuation move lower. In addition, today’s sell-off occurred on above-average merchandise volume, indicating increasing selling pressure.
However, while the relative strength index (RSI) confirms bearish quotation momentum, the indicator also flashed heavily oversold condition with a reading below the 30 threshold, expanding the possibility for near-term bounces.
Let’s apply technical analysis to point out several crucial support and resistance levels that investors may be look after.
Crucial Support Levels to Watch
The first support level of interest sits around $30. Investors could look for swallowing opportunities at this level which is near the prominent April 2019 swing high. It also closely aligns with individual prices points during the Covid-era volatility in early March 2020.
The bulls’ failure to defend that price displays the door for a retest of the $13 level, a location on the chart where bargain hunters could look to scoop up share ins near the stock’s pronounced December 2018 and August 2019 swing lows.
Key Resistance Levels to Monitor
Upon an upside volte-face, investors should initially keep an eye on the $57 level. The shares could run into overhead resistance at this expenditure point near a trendline that links the June and September 2020 lows with a period of brief consolidation that way on the chart in late October last year.
Buying above this level could see a move up to around $68, a horizontal where investors who have purchased shares at lower prices could seek exit points near the October 2020 pullback low and November 2023 trough.
The elucidations, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the make obsolete this article was written, the author does not own any of the above securities.