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.
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While secondary indicators are slightly muddled, price is leading the way.
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