Technical Analysis Of MRNA Stock

Analysis of MRNA stock chart. Is the stock in an uptrend or downtrend and where is the support and resistance. Time to invest or be careful?

October 8 2021

Vaccine stocks have taken quite a hit recently. It is just not only Moderna's stock price that is hit but others such as PFE, JNJ and BNTX that have had a nasty sell off.

The daily stock chart of MRNA is not very encouraging at the moment. Not too long ago, the stock formed a triangle chart pattern. If it had broke out above the pattern then it could really have moved up by quite a lot. But with triangle patterns, you know that it can breakout higher or breakdown lower.

MRNA's stock chart has chosen to break down out of the triangle and this was bearish. MRNA is also experiencing a bearish cross where the 20 MA cross below the 50 MA. This is not a good sign and development. Next price support area is down to the 230 area and that is likely where it will meet the rising 200 MA as well.

Let's take a look at the longer term outlook for this stock. Stock is below its rising weekly 20 MA at the moment. It does not stay below this rising 20 MA for long in the past. So perhaps there is still a possibility of it going back up. MRNA is still above its weekly 50 MA so at least for the long term it is still healthy.

Do note that MRNA stock chart is still above the daily 200 MA. So in the long term the picture is still alright for this stock. What I do not like to see in this chart is the weekly MACD lines have given a sell signal. This might not be good for the stock and may help to send the stock down to the long term support area which I have highlighted in the chart above.

To gauge the short term movement. Now let's turn to the 60 min chart of MRNA. It is still below its declining 60 min 20 MA and 50 MA. This is a stock that you do not want to be in at the moment for the short term. Trend is down and the 60 min 20 MA is below the 50 MA. Not good.

We want to see the stock trade back above the 60 min 20 MA and the 50 MA. Unless that happens it is best to remain bearish in the stock.