Two pharma stocks surging on coronavirus drug hopes
Our chartist thinks these two are worth examining and puts the numbers under the microscope.
26th February 2020 09:10
by Alistair Strang from Trends and Targets
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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.
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