Moderna Stock jumped 8%, Is the correction over in MRNA stock?

Moderna Stock jumped 8%, Is the correction over in MRNA stock?

  • Moderna Stock Price jumped 8% on a single day and showed signs of trend reversal. 
  • MRNA Stock price took a U-turn near the 52 week low.
  • Moderna Inc (NASDAQ: MRNA) beat the EPS estimate by 110.87%.

Moderna Stock price (NASDAQ: MRNA) jumped 8% on a single day and showed signs of a bullish trend reversal. However, the confirmation of the trend reversal will come when buyers succeed to break the $163.00 hurdle. 

MRNA Stock has not performed well in the past few months and slipped down by forming lower low swings. It corrected 20% approx from the recent swing high at $200.00 and displayed a death crossover. 

Moderna Stock price faced hurdle at 200 day EMA and dropped below the 50 day EMA shows positional trend is in downward direction. Therefore, any short term bounce will face difficulty to sustain on higher levels. 

Moderna Stock price closed the previous session at $137.75 with an intraday gain of 8.69%. The market capitalization stands at $52.512 Billion. Recently, Moderna Inc (NASDAQ: MRNA) released quarterly earnings on May 4, 2023. It reported an EPS of $0.19 vs estimate of $-1.747 and revenue of $1.862 Billion vs estimate of $1.178 Billion. 

MRNA stock did not react much after earnings and remains in range. It was quite surprising for the long term investors. After consolidating for a few days, stock price finally showed a decent up-move which created a positive hope for trend reversal.

Will the Moderna Stock price turn bullish?

Moderna Stock jumped 8%, Is the correction over in MRNA stock?
NASDAQ: MRNA daily chart by Trading View

Moderna Stock price has tried multiple times to sustain above the 50 day EMA but got rejected. It shows that bears have utilized the bounce for creating short positions. However, this time the scenario seems to be different because the overall market sentiment is also turning bullish. 

If the upward momentum continues and buyers succeed to breakout of $163.00 then trend reversal will be confirmed. Moreover, if the price holds $163.00 the price might rally to $200.00 in a short period of time.

Whereas, if the price faces a hurdle at $140.00 and fails to give the follow up momentum then sustainability of up-move will decrease.

Buyers accumulated MRNA Stock

MRNA Stock price formed a bullish engulfing candle on a weekly timeframe. The increase in volume shows some genuine buyers had accumulated at lower levels. The prices take U-turn from the demand zone indicating buyers are getting active and bulls are returning back to track. 

Technical indicators like the MACD curve rising upward indicates bullish momentum might continue for some more time. The RSI at 54 recovering from the oversold territory. It denotes the strength of bulls and more upside is open.

Conclusion

Moderna Stock price (NASDAQ: MRNA) jumped 8% on a single day and formed a bullish reversal pattern. However, the confirmation is still awaited. The technical analysis suggests, MRNA Stock price is near to the demand zone and more upward momentum is possible. 

Technical levels

Resistance levels: $163.00 and $180.00

Support levels: $114.00 and $100.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.


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