MRNA is a medical technology company. It is in the vaccine sector and competes ( well) with
NVAX and PFE among others. Earnings are upcoming on 8/3 in about a week.
On the 30 minute chart it appears to be in a descending wedge pattern which is typically
a bottoming with a breakout over and beyond the descending trendline. The relative
trend indicator shows the downtrend to be a slow grinding type trend with some minor
corrections along the way. As might be expected the RS lines are low in the indicator's
channel. I see this as a setup for a pre-earnings play with the expectation that MRNA
could breakout above the resistance trend line and move toward the horizontal resistance
of the triple top earlier in mid-July. I see medical stocks as a good alternative to technology
stocks that may be overextended and stressed by the current financial chaos pressuring
the markets. Another approach is a two call options targeting $ 125 expiring 8/11
and running the first until 100% profit or 8/2, the day before the expiration whichever
comes first and letting the other run through earnings into the middle of the following
week at 8/9. I always like to cut these short of expiration by a few days to diminish the
effects of time decay.
NVAX and PFE among others. Earnings are upcoming on 8/3 in about a week.
On the 30 minute chart it appears to be in a descending wedge pattern which is typically
a bottoming with a breakout over and beyond the descending trendline. The relative
trend indicator shows the downtrend to be a slow grinding type trend with some minor
corrections along the way. As might be expected the RS lines are low in the indicator's
channel. I see this as a setup for a pre-earnings play with the expectation that MRNA
could breakout above the resistance trend line and move toward the horizontal resistance
of the triple top earlier in mid-July. I see medical stocks as a good alternative to technology
stocks that may be overextended and stressed by the current financial chaos pressuring
the markets. Another approach is a two call options targeting $ 125 expiring 8/11
and running the first until 100% profit or 8/2, the day before the expiration whichever
comes first and letting the other run through earnings into the middle of the following
week at 8/9. I always like to cut these short of expiration by a few days to diminish the
effects of time decay.
Trade active:
The stock shares purchased at the premarket open have moved; price is now approaching the upper resistance trendline of the descending wedge. So far so good.
Trade active:
Price breaking out. Stop loss raised to above break-even. Awaiting regular session
for purchase of the two call options.
for purchase of the two call options.