MRNA Stock Gets an Upgrade: When is the Best Time to Buy? | Don’t ignore this chart!

Declining vaccine sales last year hurt Moderna’s stock ( MRNA ), making it one of the worst performers in the S&P 500 in 2023. You can get a bird’s eye view of the stock’s performance through the weekly chart below.

Now that the company is expanding its offerings to include respiratory syncytial virus (RSV) and influenza vaccines, analysts are taking note of MRNA, which has received an analyst upgrade. This pushed the stock higher in Tuesday trading.

Chart 1: Weekly chart of mRNA stock. MRNA’s stock price, which has been declining since its peak in 2021, is showing signs of rising further. A break above the 50-week simple moving average can confirm an upward trend.

Chart source: StockCharts.com. For educational purposes.Is now a good time to buy MRNA stock? Let’s take a look at the daily chart.

Chart 2: Daily chart of MRNA stock price. The stock is above the upper Bollinger Band, RSI is above 70 and the SCTR score is below 70. If the price continues to rise and has more upward momentum, this stock may be worth buying.Chart source: StockCharts.com. For educational purposes.

Advantages

MRNA stock price has crossed the upper Bollinger band.® and the Relative Strength Index (RSI) is above 70, indicating it is in overbought territory. However, it has just crossed the 70 mark, which means there is room for the stock to rise further.

StockCharts Technical Rankings (SCTR) scores have risen sharply to just below the 70 level. A cross above 70 would be a strong candidate for an upside.

Volume is another indicator that helps measure a stock’s momentum. There was a surge in trading volume on Tuesday, which is a good indicator of upward momentum. If volume remains above average as the stock rises, this signals positive momentum. As long as the stock continues to show technical strength, MRNA stock could be a good long-term candidate to add to your portfolio.

Some days you won’t see a trend, but it’s a good idea to add MRNA to your chart list. If momentum looks strong and MRNA’s stock price continues to rise and surpasses the 50-week SMA on the weekly chart, then this would be a good time to initiate a long position in MRNA stock. This year could be a turning point for MRNA stock.

disadvantage

When investing in stocks, your first priority is to protect your positions. So always expect that things could go the other way.

Beware of non-confirmation of Bollinger Bands

It may be helpful to look at the following three scenarios:

1. The security generates a response higher than the upper band.
2. There is a recession towards the middle band.
3. The price has surpassed the previous high but has not reached the upper band. This is a warning sign. Failure of the second reaction high to reach the upper band shows that momentum is waning, which could signal a trend reversal. The final confirmation comes with a break in support or a bearish indicator signal.

Importance of SCTR Score

Simply put, SCTR is a numeric score from 1 to 100. The higher the value, the higher the stock is ranked. To get a high SCTR ranking, a stock or ETF must have a high score and all the metrics used to calculate the SCTR score on short, medium, and long term time frames.

The SCTR score identifies leaders and laggards within specific industry groups. The calculations are done automatically, so all you have to do is add a display panel to SharpCharts or StockChartsACP.

conclusion

MRNA’s stock had the biggest gain in the S&P 500 on its first trading day of 2024. If MRNA breaks above its 50-week SMA, the next resistance level would be around $200, which is well above analysts’ price targets. This year could be a turning point for MRNA. Biotech stocks can be difficult because if any mishaps occur in the production of drugs, the stock price could fall. So, if you invest in MRNA, watch the charts closely and be prepared to sell the stock if any signs of weakness appear.

disclaimer: This blog is for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting a financial professional.