Vaccine maker Moderna (MRNA) has slumped to a new 52-week low Monday. Let's check out the trends and conditions of the charts and indicators.
In the daily bar chart of MRNA, below, I can see a weak setup. The shares have been in a downward trend since December. The price of MRNA has been cut in half and this has not attracted buyers, in my opinion.
The trading volume has not increased with this 50% price reduction and that is not a good sign. The On-Balance-Volume (OBV) line shows weakness since December and this tells me that sellers of MRNA have been more aggressive than buyers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator just failed at the underside of the zero line for an outright sell signal.
In the weekly Japanese candlestick chart of MRNA, below, I do not find a promising picture. Prices are in a longer-term decline and potential chart support is so far back in history (left side of the chart) it is more psychological support than anything to bank on.
The weekly OBV line is flat to declining. The MACD oscillator has been bearish for about five months.
In this daily Point and Figure chart of MRNA, below, I can see a potential downside price target in the $95 area.
In this second Point and Figure chart of MRNA, below, I used weekly price data to get a $76 price target.
Bottom-line strategy: MRNA could bounce at any point in time but I currently find no reason to recommend the purchase of this name. Avoid the long side for now.
