Two pharma stocks surging on coronavirus drug hopes

by Alistair Strang from Trends and Targets |

Our chartist thinks these two are worth examining and puts the numbers under the microscope.

Moderna & Cocrystal Pharma (NASDAQ:MRNA & COCP) 

With a few UK stocks going ballistic due to China virus activity, a glance at the US highlights a couple of shares enjoying time in the medical spotlight.

Moderna (NASDAQ:MRNA) & Cocrystal (NASDAQ:COCP) both deserve some examination, along with a reminder prices which go up fast can equally reverse with greater brutality.

In plain English, we're focussed on the numbers but remember checking out some fundamentals makes a lot of sense.
 
Moderna, at time of writing $24.5, has been quite encouraging, the share price needing trading beyond $26.6 to enter a near term cycle to $29.29. If bettered, secondary calculates at $31.03 though, to be fair, any enthusiastic publicity feels capable of driving the price to $36. We cannot calculate higher.

Visually, the proximity of our initial two target levels tends suggest the possibility of some hesitation around the $30 mark.

Source: Trends and Targets      Past performance is not a guide to future performance

Any reversal needs to break red (currently $18) on the chart to justify hysterics, along with the risk of reversal to $9.95 and hopefully a rebound.
 
Cocrystal Pharma, presently $2.15, looks very capable of some excitement with trades now above $2.5 as growth to an initial $3.69 appears possible.

In the event this level is exceeded, our secondary calculates at an amazing (and therefore questionable) $5.46.

Our in-house cautious nature makes us hesitant, when describing a scenario allowing a price to more than double but such is the nature of the current panic, it'd be churlish not to admit this possibility.

The price would require to slip below blue, presently $1.45, to suggest an alternative investment in running shoes!

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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