- MRNA stock surges over 20% on Friday.
- Moderna bounces on new covid strain possibly evading vaccines.
- The healthcare giant has been struggling due to poor earnings.
Moderna (MRNA) stock roared back into life on Friday as the beaten-up name staged a huge rally of over 20%. The reason is by now fairly well known. The new covid variant identified in South Africa looks like it may require a whole new vaccine in order to combat it. The new variant, given the name Omicron, looks to be able to avoid the current suite of vaccines and is potentially more transmissible than the dominant delta strain. This put vaccine manufacturers in the green on Friday with Pfizer up 6% and BioNTech (BNTX) stock jumping over 14%. Moderna had been one of the worst performers due to poor earnings in early November. The stock had been heavily punished so naturally, the snapback was greater here.
Moderna stock news
Added to the good news for the stock (bad news for the world) was news over Merck's (MRK) antiviral pill for covid. Merck announced on Friday that new data into its antiviral drug was not as hopeful as previously thought. Merck said updated data showed its pill reduced the risk of hospitalization and deaths by 30%, a much lower number than previously thought. Merck's antiviral pill, along with one being developed by Pfizer (PFE), had hit stocks of vaccine manufacturers. Interim data from Pfizers antiviral pill has shown an 89% reduction in hospitalization and deaths. Merck (MRK) shares fell nearly 4% on Friday.
MRNA stock forecast
Friday's strong performance for MRNA stock saw it rally to the 100-day moving average and also a point of high volume resistance. The charts do work! $360 is the last resistance and Moderna (MRNA) is trading here in Monday's premarket so it will be interesting to see if it can hold these gains. We would not be inclined to chase the stock up here and would favour a bearish position with a stop at $380. The bearish traits have not been totally eliminated in our view. The last earnings were a disappointment and markets are rallying as not enough information is known about the new covid variant just yet. Moderna is now overbought on stochastic but no other indicator is confirming this move just yet.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.