Biotechnology company Moderna Inc. (MRNA) was mentioned during Wednesday night's Lightning Round on Jim Cramer's Mad Money program. Cramer said, "This is a speculative one, but these guys are winners. Good call with this one." MRNA is a recent IPO so we do not have a lot of price history to work with be let's check on what we do have. A small map is better than no map.
In this daily bar chart of MRNA, below, we can see a small bottom pattern with a low in late December and a retest and higher low in late January. Prices have moved above the early January high giving us the simple definition of an uptrend. MRNA is trading above the rising 20-day moving average line (not enough activity to calculate a 50-day line yet). Trading volume is light but the daily On-Balance-Volume (OBV) line shows a rise and signals more aggressive buying. The Moving Average Convergence Divergence is above the zero line and bullish.
In this limited Point and Figure chart, below, we can see that a trade at $20.20 will be a positive development.
Bottom line strategy: if you are comfortable with a new issue then I would probe the long side of MRNA near $18 and risk a close below $16.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
Apple hasn't answered all of its critics after Monday's presentation.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
