Moderna stock is starting to regain some bullish momentum. Will it be enough to send it back to $500? Let’s look at the chart.
Shares of Moderna (MRNA) – Get Moderna, Inc. Report opened higher on Friday, but ended the day down 1.43%. The stock added 7.8% Thursday.
The volatility comes as there remains a strong push for vaccinations to fight the impact of COVID-19.
Recently, the company announced that it’s trying to combine a flu and COVID-19 vaccine, while Moderna, Pfizer (PFE) – Get Pfizer Inc. Report and others are hoping for approval on a booster shot for the latter.
Most recently, President Joe Biden announced a plan to vaccinate federal employees, which likely gave a pop to Moderna shares, although the Administration’s push is obviously being met by plenty of resistance.
It doesn’t look like demand for the vaccines is going to slow too much, especially with the rest of the world looking to vaccinate its citizens and with many looking at a third booster shot in the not-too-distant future.
The market seems to think so, too, with the stock hitting its highest level in almost a month.
Trading Moderna Stock
Shares exploded higher in early August, topping out at $497.49 before a steep and abrupt pullback.
That dip ended just five sessions after the new high, bottoming at $349. That’s a decline of almost $150 per share or about 30%. Since then, Moderna stock has been chopping around between $370 on the downside and $413 on the upside.
Last Friday, shares crept above $413, but exploded higher this week. That gave bulls a weekly-up rotation with low risk.
Since then, the stock has also reclaimed the 61.8% retracement near $440 and is trying to hold up above $450. Shares closed at $449.38 Friday.
If the stock can hold up over the 61.8% retracement, the odds improve that it can retest the highs and get to $500.
A break of the 61.8% retracement puts the 10-day moving average in play, along with former short-term resistance near $415. As long as it holds up above these levels, it’s still possible for a push to new highs.
That’s because bulls will remain in control of the stock under these scenarios.
If we see $500 for Moderna stock, it will need to be re-evaluated. This area could act as resistance — a “double top” — or the stock could push through and break out even further. If that’s the case, $550 is possible, followed by the 161.8% extension up near $590.