Shares of biotech firm Moderna (MRNA) were rallying Wednesday on the news that their respiratory syncytial virus vaccine shows 83.7% efficacy. I liked the chart improvement on MRNA on December 13 and recommended buying strength.
Let's check out the charts and indicators again.
In this daily bar chart of MRNA, below, I see that prices corrected after a strong up move in December. MRNA is trading above the rising 50-day moving average line.
The daily On-Balance-Volume (OBV) line shows a bullish rise from October telling me that buyers of MRNA have been more aggressive than sellers.
The Moving Average Convergence Divergence (MACD) oscillator is turning upwards after touching the zero line. This is a new outright buy signal.
In this weekly Japanese candlestick chart of MRNA, below, I continue to see positive price movement. Prices trade above the 40-week moving average line. The weekly OBV line is slowly rising from a low in October. The MACD oscillator is bullish.
In this daily Point and Figure chart of MRNA, below, I can see an upside price target in the $226 area.
In this weekly Point and Figure chart of MRNA, below, I can see that the software has a bullish outlook for MRNA with a price target in the $326 area.
Bottom line strategy: Wednesday's sharp rally in MRNA could be retraced a bit in the days ahead. Continue to hold earlier longs but raise stop protection to just below $170. Strength above $220 will be a positive development.
