Is Moderna Squeezing Toward a Breakout?

NASDAQ:MRNA   Moderna, Inc.
Vaccine developer Moderna had a dramatic rally in 2021, at one point more than quadrupling from its low to high. Now, after an equally dramatic pullback, it may be flashing some interesting signs to the bulls.

The first pattern on today’s chart is the $117.34 level. MRNA held that price in late March 2021 and again this month. That may suggest old support remains in effect.

Second is the series of lower highs since late March 2022 as prices held those lows. The result is a descending triangle with breakout potential.

Third, the falling trendline closely matches the 50-day simple moving average (SMA). MRNA closed above that line yesterday – another potential sign its direction is changing.

Finally you have the recent strength in biotechnology stocks. The industry has gained about 9 percent in the last month compared with the S&P 500’s 5 percent drop.

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