Technical Analysis – Moderna rebound runs out of steam as 50-MA caps gains
September 6, 2023 2:25 pm
Moderna stock posted a successful rebound from the 33-month low of 94.70 it set in August, but its comeback attempt was thwarted by the 50-day simple moving average (SMA). The price is currently heading lower with momentum indicators also pointing down.
The RSI has just slipped below the 50-neutral level, while the fast (%K) stochastic is about to enter the oversold region. However, the MACD has remained close to zero and is holding above its red signal line for now, casting doubt on the strength of the short-term bearish bias.
There is immediate support from the 20-day SMA around 107.75. If the stock fails to bounce off the 20-day SMA, the next target for the bears could be the 33-month low of 94.70. Breaching this as well would reinforce the long-term downtrend and open the way for the 80 level, which acted as resistance back in October 2020.
However, if the bearish momentum fades and the price reverses higher, there’s likely to be another major test at the 50-day SMA, currently at 114.35. A break higher would bring into focus the 23.6% Fibonacci retracement of the December 2022-August 2023 downtrend at 123.55. But for a more sustainable uptrend, the bulls would at least have to climb all the way to the 38.2% Fibonacci of 141.40, which lies slightly below the 200-day SMA.
In brief, the selling pressure is likely to accelerate if the price drops below the 20-day SMA. But should it hold, there are a number of obstacles standing in the way of a more meaningful recovery in the stock.
Moderna stock posted a successful rebound from the 33-month low of 94.70 it set in August, but its comeback attempt was thwarted by the 50-day simple moving average (SMA). The price is currently heading lower with momentum indicators also pointing down.
The RSI has just slipped below the 50-neutral level, while the fast (%K) stochastic is about to enter the oversold region. However, the MACD has remained close to zero and is holding above its red signal line for now, casting doubt on the strength of the short-term bearish bias.
There is immediate support from the 20-day SMA around 107.75. If the stock fails to bounce off the 20-day SMA, the next target for the bears could be the 33-month low of 94.70. Breaching this as well would reinforce the long-term downtrend and open the way for the 80 level, which acted as resistance back in October 2020.
However, if the bearish momentum fades and the price reverses higher, there’s likely to be another major test at the 50-day SMA, currently at 114.35. A break higher would bring into focus the 23.6% Fibonacci retracement of the December 2022-August 2023 downtrend at 123.55. But for a more sustainable uptrend, the bulls would at least have to climb all the way to the 38.2% Fibonacci of 141.40, which lies slightly below the 200-day SMA.
In brief, the selling pressure is likely to accelerate if the price drops below the 20-day SMA. But should it hold, there are a number of obstacles standing in the way of a more meaningful recovery in the stock.
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