- Moderna stock is sliding after Pfizer knocks it out.
- Pfizer releases data on its antiviral pill to combat covid.
- MRNA and other vaccine makers see sharp falls on this news.
Moderna (MRNA) shares shed some 16% on Friday, having already lost nearly 18% on Thursday. Calamitous news for holders of this one, but the meteoric rise for 2021 is still intact as MRNA shares remain up over 126% for 2021 and 227% over the last year. Perhaps a dose of perspective is needed.
Vaccine manufacturers have been under the cosh since Merck (MRK) came out with news of a pill for covid at the start of October, and now Pfizer has followed that up with an antiviral pill of its own. Antiviral treatments are not vaccines, rather they aim to treat people with the actual disease and lower the hospitalization and death rate. A pill is seen as hurting the demand for vaccines going forward.
Moderna (MRNA) stock news
Merck (MRK) as mentioned was first out with news of its antiviral treatment for covid. Merck's tablet is called Molnupiravir, and the company announced on October 1 that the drug reduces the risk of hospitalization or death by approximately 50%. Merck said in the same press release that it planned to seek immediate emergency use authorization for the drug from the US as soon as possible and from other agencies globally. That news was enough to send Moderna shares down over 11%. Just as the stock looked to be stabilizing, Pfizer (PFE) announced on November 5 its own results into an antiviral drug it has been developing. MRNA stock plunged nearly 17% as mentioned on the news.
Moderna (MRNA) stock forecast
The move on Friday cracked the 200-day moving average. This is big news for technical analysis and shows the size of the retracement. Now MRNA is bearish on all time frames. $188.41 is the next target support. This is a strong level. It was tested three times before finally breaking back in November 2020, February 2021 and May 2021.
Once MRNA shares broke above this level they retraced to test it, but buyers once again stepped in. At this $188 level support from volume is also strong. This is where the majority of the volume profile has been and the point of control is at $155.80. The point of control is the price with the highest amount of volume. Now nothing goes down in a straight line forever, so expect some form of consolidation around these recent losses. Retracements to the 200-day at $250 or the gap at $275 should not be too surprising, but the overall trend is lower unless these levels are broken. Once below $188 we can start to look at buying dips again as the volume profile lends itself to some support.
Short-term swing traders may look to buy the dip at current levels and can take some solace from the strongly overbought Relative Strength Index (RSI). Before diving in, we would look for a confirmation signal from the stochastic crossover. Buying dips in something falling at this speed is like trying to catch a falling knife.
MRNA daily chart
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.