Stock of the day: Moderna

Today’s focus is on Moderna, which continues to drift lower each month, consistently making new lows as it trends downward within a falling wedge pattern marked by blue lines. This wedge formation features a clear support level at the lower line and a clear resistance at the upper line of the wedge. As long as Moderna remains within this falling wedge, the downtrend is likely to continue, maintaining a bearish sentiment.

Yesterday’s session was particularly negative, with the price forming a shooting star candlestick, which often signals a reversal or continuation of a bearish trend. This pattern suggests that Moderna is gearing up to test the support line of the falling wedge, putting downward pressure on the stock. The sentiment remains negative, reflecting a lack of buying interest.

However, for potential buyers, this wedge pattern presents an interesting opportunity. Falling wedges are typically considered reversal patterns, and a breakout to the upside would trigger a strong buy signal. Specifically, if Moderna closes a day above the upper line of the wedge, it would indicate a bullish reversal, suggesting a shift in momentum.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-moderna-7