Moderna's Covid vaccine causes share surge to new high
After successful vaccine trials, our chartist is optimistic if the share price does this.
16th July 2020 08:54
by Alistair Strang from Trends and Targets
After successful vaccine trials, our chartist is optimistic if the share price does this.
Moderna Inc (NASDAQ:MRNA)
It's always a surprise when market gains are "blamed" on a single company but, for a while, Nasdaq listed Moderna (NASDAQ:MRNA) held the accolade on Wednesday.
Their crime was fairly simple, by announcing a Covid-19 vaccine entering final clinical trials later in July, stock markets surged upward in the US and Europe.
This is the second time Moderna created a frenzy and this time, it justified a read through their report.
To cut a long story short (and skip the difficult scientific stuff), they tried their vaccine on 45 people.
In all 45 people, the medicine triggered immune system responses which produced the correct antibodies to defend against Covid-19.
None of the participants experienced any safety issues with the drug and as a result, the vaccine is going forward to final clinical trials on 27 July.
Hopefully, this phase lasts less than the usual one to four years normally allocated to determine a new drugs long term effects.
The immediate situation with Moderna Inc shares looks pretty straightforward. Price movement next exceeding $88.5 should trigger further growth to an initial 100.5 dollars. In the event this level is bettered, we calculate $114 as a reasonable secondary target.
Better still, if everything goes a little crazy with the price somehow exceeding $143, it goes beyond any level at which we can calculate "top" as the sky is the limit.
Visually, there's a well defined uptrend, one which implies concern in the event the share price wanders below the $60 mark.
In fact, with the strength of recent acceleration, we'd experience early worries should it even wander below the $70 level, making us suspect we're not seeing a potential entry point but instead, a potential trap for monies invested.
To explain, such a triggering movement risks reversal to the $30 mark.
For now, we prefer optimism, but only if the share price exceeds $88.5.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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