Moderna Rallies After Earnings Print: Could A Technical Reversal Be In Sight?

Moderna Inc. MRNA shares are trading after the company reported better-than-expected fourth-quarter EPS and sales results and announced a new $3 billion buyback.

Moderna reported quarterly earnings of $11.29 per share, beating the analyst consensus estimate of $9.90. The company reported quarterly sales of $7.20 billion, beating the analyst consensus estimate of $6.79 billion

Moderna is up 9.3% at $148.41 at time of publication.

Related: What's Going On With Moderna Shares Today?

Moderna Daily Chart Analysis

• the stock has trended lower throughout the past couple of months, falling below the higher low trendline in what traders call an ascending triangle pattern.
• The stock is trading higher now after the earnings beat and if it can begin to form higher lows, shares could see a technical reversal in the coming weeks.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) jumped higher Thursday and pushed to 42 on the indicator. This shows more buyers have pushed into the stock, and if the RSI can cross above the middle line, it will show there are more buyers overall.

What’s Next For Moderna?

Moderna is having a bullish day in a bearish trend and will need to prove that it can break out of this trend to begin building a bullish one. The stock has been forming lower highs and lower lows, which signal a downward trend.

Bullish traders want to see the stock begin to form higher lows and cross above the moving averages for the stock to look really bullish once again.

Bears want to see the stock continue to form higher lows and be able to hold below the moving averages. Bears want the RSI to stay below the middle line as well and are hoping it drops closer to the oversold region.