Shares of Moderna (NYSE: MRNA) traded 7% higher on Monday, after receiving positive results from their Covid 19 vaccine for kids. Moderna is also announcing their results in the first week of November and investors are expecting strong results, so is this a time to buy Moderna now?
A look at this year’s charts-
Moderna has fallen by over 30% from its highs in September, and the correction may be over now.
Moderna gave a strong closing on Monday and it could be the start of a new rally, however, there is a strong supply zone at $360, and Moderna could take some resistance from the zone.
Moderna bounced from the supporting trendline on Monday and has also taken support and is showing signs of strength, and is also indicating towards a strong reversal.
With results coming out on the 4th of November, the stock could start a new rally after increased investor confidence due to potentially strong results.
A target can be set at $420 and for investors willing to hold Moderna for a longer period a new all-time high could also be set in the coming months.
A stop-loss can be maintained at $290, and investors must be cautious that results could also not be as strong and thus a sell-off may also be triggered.
A closer look at charts on Monday-
Volumes were extremely high on Monday, indicating that the rally will continue on Tuesday.
A bearish divergence was also seen on Monday, which suggested that on Tuesday a small pullback to $340 will be seen, which can be the entry levels for investors.
Moderna is looking very strong for the coming weeks, especially after promising results from the Covid 19 vaccines for kids and their upcoming results in early November. Investors can look for opportunities to enter for targets above $420.
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