Moderna broke trend to the downside, so long term view is more likely a short rather than long. As illustrated in the chart, I wouldn't short at current prices, but around the red level I have drawn. The trade is invalidated if it closes above the red zone with high volume. If it closes above it but on low volume, it could be a fake out with the following candles closing below it once again. The red zone at the very top is the next resistance zone if it does get through the first resistance zone.
Please disregard the overall timeframe estimate, it can take longer or shorter for this trade to play out, but the move is the general idea.
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MRNA ended up moving further down from the initial idea and bounced from the buy zone almost perfectly. I will be taking partial profits at 280-290 range and let the rest ride to the red zone resistance, with a stop loss below 210.
To clarify, the long term view is short, so I would not long here. Even though it will likely do a bit of a bounce up before the further move down as illustrated, it can also very likely just go further down, so avoiding the trade until it gets to one of the zones is the best move.
tnt489
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What do you think will next?
neatfreak301
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thanks for sharing! I expect it will bounce off to 400 level before falling down sharply to below 300 level. Let's watch what it does next week but I already bought PUT exp next Friday.