Stock Quote

Is Moderna Headed for a Breakout?

A level of support and a resistance line have created an ascending triangle in the chart of Moderna, Inc. (MRNA). If the stock breaks through this resistance, a breakout is expected. Read more to learn how to take advantage of this trading opportunity.

Moderna, Inc. (MRNA) is a commercial-stage biotech company. The firm's mRNA technology was rapidly validated with its COVID-19 vaccine, which was authorized in the United States in December 2020. Moderna had 24 mRNA development programs as of early 2021, with 13 of these in clinical trials.

MRNA’s COVID-19 vaccine has demonstrated strong uptake in several countries where it received authorization for temporary use over the past few months. Management expects more than $19 billion in vaccine sales for 2021. In addition, it has advance purchase agreements in place with several countries for 2022 worth $20 billion.

As of the most recent quarter, MRNA had $8 billion in cash compared to only $433 million in long-term debt. From a growth standpoint, sales surged 6,456% year over year in the second quarter. Analysts expected revenue to surge another 8,216% year over year in the current quarter.

These growth figures have led to a Growth Grade of B in our POWR Ratings system. In terms of valuation, the stock appears undervalued based on its forward P/E of 13.81. The stock was showing bullish momentum from April to early August, but performance has been mixed since, as you can see from the chart below.

Take a look at the 6-month chart of MRNA below with my added notations:

Chart of MRNA provided by TradingView

Over the past couple of weeks, MRNA has stalled at $413 resistance area (red) multiple times, while also forming a trend line of support (green). Together, these two lines have created an ascending triangle.

Click Here to Read the Greatest Trading Book Ever Written

Eventually, MRNA will have to break either the $413 resistance or the triangle support. A long trade could be made on a break above $413. A break below the trendline would be an opportunity to enter a short trade.

Want to Discover More Great Trades?

What is better than finding the 1 attractive stock in this article?

Discovering 5 timely trades...like the ones in this new special report. Click below to claim your free copy now!

5 Stocks Ready to BREAKOUT!


MRNA shares were trading at $397.12 per share on Friday morning, down $3.18 (-0.79%). Year-to-date, MRNA has gained 280.13%, versus a 20.52% rise in the benchmark S&P 500 index during the same period.



About the Author: Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.

More...

The post Is Moderna Headed for a Breakout? appeared first on StockNews.com
Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.