Moderna Could Pull Back Even More as Traders Nail Down Profits
Here's what traders should do as things play out.
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Shares of vaccine maker Moderna MRNA are taking a hit Tuesday. Let's check and see if this is an important turning point.
In this daily bar chart of MRNA, below, I can see that the shares have soared about $70 per share in just the past four weeks. MRNA is still well above the rising 50-day moving average line and above the bottoming 200-day moving average line.
The On-Balance-Volume (OBV) line has been moving higher since November but may be making a peak or high this week. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of MRNA, below, I see a different perspective looking at the price action of the past three years. The setup here looks positive. The shares trade above the rising 40-week moving average line.
The weekly OBV line is moving in a positive direction. The MACD oscillator is now above the zero line.
In this daily Point and Figure chart of MRNA, below, I can see a downside price target in the $129 area.
In this weekly Point and Figure chart of MRNA, below, I can see that prices reached and exceeded a price target in the $148 area.
Bottom-line strategy: After the gains of the past two months MRNA shares need to correct or pull back. Corrections need to have a price pullback and they also need some time for shares to unwind the gains. Traders should stand aside from MRNA for a few weeks to let this pullback play out.
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