Stock of the day of preparation before marketing: Moderna – Moderna (MRNA)
Benzinga’s PreMarket Prep airs every morning from 8 a.m. to 9 a.m. ET. During this hectic and highly informative hour, traders and investors alike tune in to get the top news for the day, the catalysts behind these moves, and the corresponding price action for the upcoming session.
Each day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick with producer Spencer Israel.
The stock prices of a few different pharmaceutical companies have appreciated rapidly following the development of a vaccine for COVID-19. One problem that could benefit the most is Moderna Inc. (NASDAQ: ARNM).
Building a major base: From December 2019 to March 2020, Moderna hit all of its monthly lows between $ 17.58 and $ 19.31, with the lowest being hit in March. As the events of the pandemic began to unfold and the need for a vaccine became increasingly evident, savvy investors began to buy Moderna.
What was a slow, steady rally picked up in the space of five days when the problem went from $ 32.90 to $ 51.69. The rally was sparked by the announcement that the federal government had granted the company $ 454 million to accelerate the development of a vaccine against COVID-19.
The rest is history: With the continued positive development of trials, the issue gained more and more upward momentum until the announcement of a completed vaccine. In a volatile way, the problem grew more and more. In fact, its all-time high was not reached until February 26 at $ 189.60. Interestingly, its all-time close high was reached on May 3 at $ 186.02.
Well-defined resistance zone: Short term investors sometimes fall too much in love with short term charts and miss a clear signal the market is giving them. For example, the problem peaked in a well-defined area each month, but in March 2021. In January it peaked at $ 185.98, in February at $ 189.26, in April at $ 186.80 and as mentioned previously in May at $ 189.
In essence, it is evident that large shareholders have targeted this area as an exit point for their stake. It should be noted that the monthly lows for the months above were in a range from $ 103.36 to the low of $ 143.56 this month. For shareholders with a large stake, huge swings in profit and loss can become difficult to digest.
Tuesday’s Catalyst broadcast live: Just after 8 a.m. EST, the company announced that the TeenCOVE study of its COVID-19 vaccine showed no cases of COVID-19 after two doses of the vaccine. As expected, the problem increased in pre-market trading and went from the $ 165 area to $ 170.36.
Dennis Dick, who has no position on the issue, made it clear what he would do if he owned the show: “What’s the show’s next catalyst? more than 1000%, what else will move? the problem is higher? If I had it, I would sell it. “
The author of this article has rated the entire $ 170 area as formidable resistance.
Price action during the ordinary session: The problem retreated into the pre-market and opened the regular session at $ 166.56 and climbed to $ 165.10, it tested the $ 170 area several times.
By 1:30 p.m., he was able to hit $ 171.74, but fell back into the middle grip of $ 168.