Stock of the day: Moderna

Moderna is in an intriguing spot right now, showing potential for a promising movement. Long-term, the stock has been influenced by an inverse head and shoulders pattern marked in yellow. In early May, Moderna broke through the neckline of this formation, indicated by an orange line, which initially signaled a strong buy opportunity. The stock rallied to a high at the end of May but subsequently declined, recently testing the neckline as support. Despite fears of a breakdown due to lack of demand, the price bounced back yesterday off both the neckline and a black uptrend line. This dual support bounce suggests renewed buying interest and the potential for further gains.

The recent price action indicates that demand is returning. The bounce off the black uptrend line and the neckline’s support shows that buyers are stepping in, seeing value at these levels. As long as the price remains above these crucial supports, the sentiment remains positive, and a further upswing appears likely. Investors should watch closely for any signs of weakening demand, which could be indicated by a price drop below these supports.

In summary, Moderna’s current setup is bullish as long as it stays above the orange and black support lines. The recent bounce provides a buy signal, but caution is warranted. A break below these levels would signal a sell, reversing the current bullish outlook. For now, buyers have reason to be optimistic, keeping an eye on these critical levels for sustained upward momentum.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-moderna-3