Could Moderna See Another Leg Up After Breaking Out?

Moderna Inc. MRNA shares are trading higher Thursday after reports came out the company is going to develop a new vaccine — named mRNA-1073 — which will be a single shot that combines a booster dose of COVID-19 with a booster dose of a flu vaccine.

Moderna shares were trading up 7.81% at $455.92 at last check Thursday afternoon.

Moderna Daily Chart Analysis

• The stock broke out and is now falling into a consolidation period and looks to be forming into a bullish flag pattern.
• The flag pattern will likely see a downtrending channel until the stock can either break above pattern resistance or below pattern support. A break could cause a further move in the same direction.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock has recently seen bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) moved higher with the breakout, then slowly fell to the middle line and bounced higher to 65 where it is at now.

What’s Next For Moderna?

Bullish traders want to see the stock continue to consolidate for a time before breaking above pattern resistance. This could cause another leg of a breakout to happen where the stock makes new highs.

Bearish traders would like to see the stock consolidate for a time and drop further, below pattern support. This could then cause a further downward move to happen.