Continuing his look back to last quarter during Tuesday's "Mad Money" program, host Jim Cramer highlighted the biggest winners on the Nasdaq, many of which continued to be COVID winners, despite the economy beginning to reopen.
The best stock in the Nasdaq last quarter was Moderna (MRNA) , up 79%. Cramer said shares are pricey, but if you believe the delta variant of COVID spells trouble, shares could continue to rally.
Let's check on the charts and indicators again for some clues. We reviewed the charts on June 8 and wrote that, "Traders interested in going long MRNA should wait for a retest of the top of the triangle formation noted above. The $190 area is where I would like to go long MRNA. Risk to $160. The $353 area is our longer-term price target."
In this daily bar chart of MRNA, below, we can see that MRNA dipped to around $195, before rallying to new highs. The slopes of the 50-day moving average line and the 200-day moving average line remain positive. The daily trading volume was neutral while the On-Balance-Volume (OBV) line is close to making a new high. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line, but poised to turn lower for a take-profit sell signal.
In this weekly Japanese candlestick chart of MRNA, below, we see a bullish picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. Trading volume is on the lite side, but the weekly OBV line remains in an uptrend. Buyers are more aggressive even with dull trading volume. The MACD oscillator is in a bullish alignment in this time frame.
In this daily Point and Figure chart of MRNA, below, we can see a potential upside price target in the $345 area. We can also see by the Volume by Price bars (left scale) that there was some heavy volume in the $216 area. A decline below $216 might precipitate further weakness.
Bottom line strategy: MRNA has rewarded investors, but that does not mean we start to take things for granted. Traders should raise stop protection to at least $210 to lock in gains.