Will Moderna (MRNA) Recover?

Moderna, Inc. (MRNA) 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 (NASDAQ: MRNA) below with added notations:

MRNA had an amazing run up from its low earlier in the year, but the stock has recently hit a wall at the $190 level (red). That barrier is also preventing the stock from hitting new 52-week highs.

A solid close above that $190 mark should lead to much higher prices for the stock. Therefore, the possible long position on the stock would be on a breakout above that level with a stop placed under it. 

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!

Good luck!

Christian Tharp, CMT