Moderna Shares Linger At 2-Month Lows: What's Next For The COVID-19 Vaccine Company

Moderna Inc MRNA stock is trading at its lowest level since late July. This once high-flying stock that notched up stratospheric gains from its COVID-19 program has lost altitude.

The Breathtaking Tally Hits The Pause: Moderna shares soared over 430% in 2020, as the company brought its COVID-19 program to fruition following about 11 months of concerted efforts.

The FDA accorded emergency use authorization for the company's vaccine on Dec. 18, 2020.

Moderna's shares extended the rally into 2021, as the biopharma clinched multiple supply deals with governments and vaccine revenues began trickling in.

The stock ran up to an all-time high of $497.49 on Aug. 10 before beginning a consolidation move. Amid the sideways move, it was holding support around the $380 area.

In late September, the stock breached the support level and began a steep descent amid the broader-market weakness and general skepticism about prospects for COVID-19 vaccine stocks in the wake of the alleviation of the pandemic situation.

Last Friday, Merck & Co., Inc. MRK's announcement of a positive readout for its COVID-19 treatment candidate triggered renewed selling of Moderna's stock as well as other vaccine stocks.

The selling is continuing Monday despite a positive headline about a booster dose of Moderna's COVID-19 vaccine, aka Spikevax, getting a positive recommendation from the European Medicines Agency (EMA) committee.

Related Link: Why Moderna Is Investing In A New Science Center

What's Ahead For Moderna: With a positive recommendation from the EMA committee, the European regulator could soon announce its decision about expanding authorization.

In addition to the EMA recommendation, a near-term upcoming catalyst that could help stall the downside is the imminent decision by the Food and Drug Administration.

The FDA's Vaccines and Related Biological Products Advisory Committee is scheduled to meet on Oct. 15 to discuss an amendment to the emergency use authorization of Moderna's COVID-19 vaccine for the administration of a booster dose in individuals 18 years of age and older.

Further ahead, the company's third-quarter results could act as a stock-moving catalyst.

How the pandemic plays out in the coming months and how effectively the company can tap into the endemic setting could largely determine the stock trajectory in the near- to medium-term.

On the downside, the stock has support around the $286 and $235 levels. In the eventuality of the stock reversing course, the stock could run into resistances around $376, $411 and $455 levels.

The stock's relative strength index is currently at 32, suggesting oversold levels. It could be in for a possible rebound if catalysts pan out positively.

At last check Monday at publication, Moderna shares were down 4.54% at $345.59.

Related Link: The Week Ahead In Biotech (Oct. 3-9): ChemoCentryx FDA Decision, Conference Presentations, IPOs And More

Photo: Ian Hutchison via Unsplash