Moderna Unable To Reclaim Above Trendline: What Does This Mean?

Moderna Inc MRNA shares are pulling back among other vaccine stocks due to COVID-19 omicron variant concerns as well as cooling off from a good November.

The World Health Organization is now saying the omicron variant has been detected in more than 40 countries since it was first reported by South African health authorities.

Moderna shares were trading down 13.54% at $265.28 Monday afternoon at publication

See Also: Why Moderna Shares Are Sliding Today

Moderna Daily Chart Analysis

• The stock looks like it was unable to reclaim the higher low trendline and continue trading in what technical traders call an ascending triangle pattern. The stock pushed up to the higher low trendline and this trendline acted as resistance before the stock fell back lower once again.
• The $460 level has been a strong area of resistance for the stock as it’s been trading below it and unable to break the level for a good period of time. The higher low trendline looks to have recently become an area of resistance and shows the stock was unable to continue trading in the pattern and has become more bearish.
• The stock trades below the 50-day moving average (green) and crossed below the 200-day moving average (blue) Monday, indicating the sentiment in the stock looks to be turning bearish.
• Each of these moving averages may hold as a place of resistance in the future.
• The Relative Strength Index (RSI) has been pushing lower the past couple of weeks and now sits at 42. This shows sellers have taken over the stock and now selling pressure is greater than buying pressure. If the RSI keeps falling the stock may enter into the oversold range.

What’s Next For Moderna?

Bullish traders are looking to see the stock form higher lows and try to reclaim the higher low trendline once again. Bulls are then looking to see the stock break above the $460 level and be able to consolidate above the level for possible further upward moves later in the future.

Bearish traders are looking to see the stock stay below the higher low trendline and begin to form lower highs. This may cause the stock to begin a downward trend and see further pushes lower in the future. Bears are also hoping the stock can hold below the moving averages for sentiment to stay bearish.

Photo: Ian Hutchinson via Unsplash