Stocks of Moderna (NASDAQ:) faltered last week as markets waited for information from a US Centers for Disease Control (CDC) panel on recommendations for COVID vaccines. On Monday, the CDC panel's first guideline was released: They unanimously recommended the Pfizer (NYSE:) BioNTech (NASDAQ:) inclusion for everyone 16 and older.
It wasn't exactly good news for Moderna. As of Tuesday, the stock had already lost 2.7% in the premarket, after Japan withdrew 1 million more of its biotech vaccines from distribution, on top of the 1.63 million doses already taken last week after two deaths. due to contamination.
Yesterday there was better news for the drug manufacturer: A study of Belgian health professionals, published Monday in the Journal of the American Medical Association, found that Moderna produces double the antibodies of the Pfizer vaccine, which could lead to more demand for the MRNA inoculation in the future.
Yet the current supply and demand dynamics for the stock are not great.
Moderna completed a bullish flag after the price crossed below its recent uptrend line, possibly bearish after the 29% plunge in the first half of August.
The price has been trying to rise in the last few sessions, but has produced long upper shadows, showing that the bulls are backing off as bears are pushing the price down.
The MACD's short MA crossed below the long MA and produced a sell signal as the price fell below the uptrend line. The RSI peaked, demonstrating weakening momentum. in the direction of the pattern and find selling pressure before risking a short.
Moderate traders would also wait for the price to fall, then rise for better access, if not confirmation.
Aggressive traders could sell immediately, provided they accept the added risk of moving ahead of the rest of the market.
Trade example
Entry: $377
Stop Loss: $402
Risk: $25
Goal: $302
Reward: $75
Risk: Reward Ratio: 1:3
