World Stock Watch

Moderna Shares Soar on H5N1 Bird Flu Vaccine Hopes

A New Opportunity Emerges

Investors are betting big on Moderna’s development of an H5N1 bird flu vaccine, sending shares soaring 12% to $47.53 on Tuesday. This surge comes on the heels of the first reported death linked to the disease in the U.S. this week. After a tumultuous 2024, which saw the stock lose over half its value, Moderna is off to a strong start this year.

Technical Analysis: Key Price Levels to Watch

Moderna’s chart is showing promising signs, with the stock breaking out from a descending channel last month and continuing to trend higher. On Tuesday, it closed decisively above the respected 50-day moving average (MA) on the highest volume since December’s triple witching trading session. The relative strength index (RSI) confirms bullish momentum, with a reading above 65, but still has room to test higher prices.

Overhead Resistance Levels

Investors should keep a close eye on three key overhead areas where the shares could run into resistance:

• $57: This level marks the upper end of a consolidation period that formed within the descending channel between October and November last year. A close above this level could propel the shares to the next resistance area.
• $72: This region may see resistance near the early-September low and subsequent countertrend peak later that month.
• $85: Further buying could push the shares up to this level, where they may encounter resistance from a multi-month horizontal line that connects the prominent February low with a series of comparable price points throughout August.

Support Levels to Monitor

During pullbacks, investors should initially focus on the $44 level, which finds a confluence of support from the 50-day MA and a short-term trendline extending back to mid-November. A breakdown below this level opens the door for a potential retest of the $37 level, a region where investors may look for buying opportunities around the November swing low.

Investor Takeaway

Moderna’s development of an H5N1 bird flu vaccine has sparked renewed interest in the pharmaceutical giant’s stock. With the technicals looking promising, investors should keep a close eye on key price levels to maximize their returns.