Key takeaways
- Moderna shares will likely remain on watch after plunging nearly 17% on Monday as the struggling pharmaceutical maker cut its 2025 revenue forecast by $1 billion.
- The stock collapsed after a two-month pennant trend, setting the stage for a possible further decline.
- Investors should watch for crucial support levels on Moderna’s chart around $30 and $13, while also monitoring key resistance levels near $57 and $68.
Shares of Moderna (MRNA) will likely remain on watch Tuesday after plunging nearly 17% on Monday as the struggling pharmaceutical maker slashed its 2025 revenue forecast by $1 billion.
The company, which also said it plans to cut spending by $1.5 billion this year and next, continues to face challenges as it manages rising drug development costs in a context of falling demand for treatments against Covid-19 and slow adoption of its drugs. medicine against respiratory syncytial virus.
Moderna shares have lost about two-thirds of their value over the past year as of Monday’s close and are down more than 90% from their August 2021 Covid-era high.
Below, we zoom out by taking a closer look at Moderna’s weekly chart and identify crucial historical price levels to watch amid the stock selloff.
Breakdown of the pennant pattern
Since staging a counter-trend rally to the 200-day moving average in May of last year, Moderna shares have been trending sharply down. Most recently, the stock collapsed after a two-month pennant trend, setting the stage for a possible continued decline. Additionally, today’s selloff occurred on above-average trading volume, indicating increasing selling pressure.
However, while the Relative Strength Index (RSI) confirms bearish price momentum, the indicator also reported strong oversold with a reading below the threshold of 30, increasing the possibility of short-term rebounds.
Let’s apply technical analysis to highlight several crucial support and resistance levels that investors can watch.
Crucial Support Levels to Watch
The first interest support level is around $30. Investors could look for buying opportunities at this level, near the April 2019 high. It also closely aligns with several price levels during the Covid-era volatility in early March 2020.
The bulls’ inability to defend this price opens the door to a retest of the $13 level, a spot on the chart where bargain hunters could look to scoop up stocks near the pronounced lows of December 2018 and 2018. August 2019.
Key Resistance Levels to Watch
In the event of a reversal higher, investors should initially keep an eye on the $57 level. Stocks could encounter overhead resistance at this price level, close to a trendline that connects the June and September 2020 lows to a brief period of consolidation that formed on the chart in late October of the year last.
Buying above this level could lead to a rise to around $68, a level where investors who bought shares at lower prices could look for exit points near the low of the October 2020 pullback and from the low of November 2023.
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