Moderna’s Stock Plunge: What’s Next for Investors?
After a dismal Monday, Moderna’s shares are likely to remain under intense scrutiny. The biotech company’s decision to slash its 2025 revenue forecast by $1 billion sent its stock tumbling nearly 17%. This drastic move has raised concerns about the company’s ability to navigate the challenges it faces.
A Perfect Storm of Challenges
Moderna is struggling to balance increasing drug development costs with declining demand for Covid-19 treatments and the slow adoption of its respiratory syncytial virus medication. These challenges have taken a toll on the company’s stock, which has lost around two-thirds of its value over the past year.
Charting a Course
A closer look at Moderna’s weekly chart reveals crucial historical price levels that investors should monitor amid the stock’s sell-off. Since May last year, Moderna shares have trended sharply lower, breaking down from a two-month pennant pattern. This breakdown sets the stage for a potential continuation move lower.
Key Support and Resistance Levels
Investors should keep a close eye on several key support and resistance levels. The first support level of interest sits around $30, which is near the prominent April 2019 swing high. If the bulls fail to defend this price, the door opens for a retest of the $13 level, where bargain hunters may look to scoop up shares.
On the upside, investors should initially focus on the $57 level, which could provide overhead resistance. Buying above this level could see a move up to around $68, where investors who have purchased shares at lower prices may seek exit points.
Technical Analysis
The relative strength index (RSI) confirms bearish price momentum, but it also flashed a heavily oversold condition with a reading below the 30 threshold, increasing the possibility for near-term bounces. Today’s sell-off occurred on above-average trading volume, indicating increasing selling pressure.
What’s Ahead for Moderna?
As Moderna continues to face challenges, investors will be watching closely to see how the company responds. With key support and resistance levels in sight, investors will be looking for opportunities to buy or sell. One thing is certain – Moderna’s stock will remain under intense scrutiny in the coming days.
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