Moderna Stock Needs a New Shot in the Arm
How low will the biotech's shares go?
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Moderna MRNA develops mRNA-based medicines. Its Covid-19 vaccine sent sales soaring during and after the pandemic. Thursday morning Moderna reported a GAAP loss per share of $3.33, which beat estimates by $0.02, and revenue of $241 million, which beat by $106.13 million.
The share price is down some 15% in early trading Thursday after the company lowered its full-year sales guidance on lower Covid vaccine sales. Let's check out the charts of this biotechnology stock.
In the daily bar chart of MRNA, below, I can see that the shares have turned lower from late May. I have to use my imagination for where the stock is trading early Thursday. Thes prices in the regular session will be a new low for the move down and means that we are testing the 200-day moving average line.
The On-Balance-Volume (OBV) line shows weakness from late May and tells me that sellers of MRNA are being more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of MRNA, below, I don't see a bullish picture. Prices are set to test and maybe break the rising 40-week moving average line.
The weekly OBV line has softened since early June. The MACD oscillator is pointed lower and the trend strength has been weakening.
In this daily Point and Figure chart of MRNA, below, I can see that the shares are pointed lower. The downside price target of $113 has been overrun early Thursday.
In this weekly Point and Figure chart of MRNA, below, the software suggests a price target in the $79 area. Too bearish?
Bottomline strategy: I hate getting shots but in full disclosure I am in favor of vaccines and whatever protection you can get from diseases or ailments. However, I am not bullish on shares of MRNA.
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