Vaccine maker Moderna (MRNA) surged higher on Tuesday and Wednesday morning, but it has since pulled back. Let's see what the charts and indicators are telling us.
In this daily bar chart of MRNA, below, I can see that prices rallied to test the underside of the declining 50-day moving average line and it looks like prices reversed lower. MRNA also trades below the 200-day moving average line. The On-Balance-Volume (OBV) line shows weakness from the middle of December. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line telling us that MRNA lacks trend strength.
In this weekly Japanese candlestick chart of MRNA, below, I see a mixed to weak chart picture. Prices trade below the declining 40-week moving average line. The weekly OBV line shows weakness from the middle of January. The MACD oscillator slipped below the zero line in early April.
In this daily Point and Figure chart of MRNA, below, I can see a potential upside price target in the $179 area.
This weekly Point and Figure chart of MRNA, below, shows us the same $179 price target as the daily chart above.
Bottom line strategy: Many stocks make sharp moves to the upside and sometimes it is the start of a meaningful advance. Other times it is a "flash in pan" and prices quickly retreat. I see no technical reason just yet to jump in with purchases of MRNA.
