Moderna Looks To Bounce At Support After Announcing New Africa Facility Plans

Moderna Inc. MRNA shares are trading higher Thursday after the company announced plans to build a state-of-the-art mRNA facility in Africa to manufacture up to 500 million doses per year.

Moderna's proposed site will also include bottling and packaging capabilities. The company said it would begin the process of deciding the country and location soon.

Moderna shares were trading up 3.98% at $314.45 at last check Thursday afternoon.

See Also: Moderna To Build mRNA Vaccine Factory In Africa

Moderna Daily Chart Analysis

• The stock looks to have bounced off of the higher low trendline and pushed higher in what technical traders call an ascending triangle pattern.
• The $460 level has been an area where the stock has struggled to cross above in the past. The higher low trendline is somewhere the stock has found support multiple times in the past. These support and resistance lines may continue to hold until one of them is broken.
• The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue), indicating the stock is likely in a period of consolidation.
• The 50-day moving average may act as an area of resistance, while the 200-day moving average may hold as support.
• The Relative Strength Index (RSI) has been dropping lower the past few weeks and now sits at 34. This RSI is near the oversold area, an area where the stock would see much more selling pressure than buying pressure.

What’s Next For Moderna?

Bullish traders are looking to see the stock bounce off the higher low trendline and begin to head back toward resistance. Eventually bulls would like to see the stock cross above resistance and start to hold the area as support. This could indicate the stock is ready for a further push higher.

Bearish traders are looking to see the stock cross below the higher low trendline. This could possibly signal the stock is ready to see a change in trend. Bears also want to see the stock be able to cross below the 200-day moving average for the sentiment in the stock to turn more bearish.

Photo: Fletcher via Wikimedia Commons